Applied Materials (AMAT) PT Raised to $255 at B.Riley
B.Riley analyst Craig Ellis raised the price target on Applied Materials (NASDAQ: AMAT) to $255.00 (from $250.00) while maintaining a Buy rating.
The analyst commented: "AMAT’s 5/16 AMC F2Q24 print and F3Q24 guide were modestly above consensus with solid execution, but shares, which were up 27% YTD versus the SOX’s +15%, still slipped -2% AMC, we believe on profit taking to create a buy-more-on-the-dip opportunity. On quarterly items, key segments are performing well to slightly exceed our forecasts, and while the F3Q outlook was a little lower, we chalk that up to multi-quarter linearity. More broadly, AMAT believes numerous tectonic shifts are underway led by AI’s leading edge logic, DRAM stacking, and advanced packaging where AMAT has strong positions and with the opportunity for gate-allaround transistor architectures $6B per 100k wafers per month plus $1B more with backside power. We believe AMAT retains confidence it can materially outgrow the industry in CY24 and believe it’s tracking toward $3.1B in combined gate-all-around (GAA) and Advanced Packaging revenues, with $0.5B from HBM. So, favorable tectonic shift exposure is helping it motor along. Bears may note slightly lower China mix, but we had expected that decline, while Bulls counter with strong results despite the lack of robust DRAM spend and without almost any NAND help, which should both hit in 2025. Overall, our FY24 EPS tick 2% lower but FY25 4% higher, and with favorable growth positioning, our PT ticks up from $250 to $255, reiterate a Buy rating."