Applied Materials (AMAT) PT Raised to $35 at RBC Capital Following Strong April-Q Guidance
RBC Capital Markets analyst Amit Daryanani reiterates Sector Perform rating and raises price target on Applied Materials Inc. (NASDAQ: AMAT) to $35 (from $30), as the company provided April quarter guidance well above expectations.
Daryanani writes, "AMAT reported Jan-qtr results in line with Street and provided Apr-qtr guidance significantly above consensus estimates. Similar to LRCX and other semicap peers/suppliers, AMAT expects 2H17 to be weaker than 1H17. While we understand investors' concerns around "cycle peak", we think the reality remains that in 2017, WFE is heading higher (+5% or more), and AMAT's share should improve, enabling the company to again outgrow WFE in 2017. Display continues to surprise to the upside with OLED buildouts strengthening more than investors expect (this could also provide an offset to potential H2 softness in core NAND)."