Applied Materials (AMAT) PT Lowered to $225 at Needham
Needham analyst N. Quinn Bolton lowered the price target on Applied Materials (NASDAQ: AMAT) to $225.00 (from $240.00) while maintaining a Buy rating.
The analyst commented: "Applied Materials reported strong results for F4Q24 (Oct) but guided F1Q25 (Jan) revenue below consensus estimates. Management provided little color beyond F1Q25 and made no call on CY25 WFE. China accounted for 30% of F4Q24 sales and will remain 30% of F1Q25 sales. Over the longer term, management sees that WFE intensity, propped up by the strong China demand of 18% in 2023, could decline and normalize to around 15%, essentially backing away from their long-standing view that WFE should perform in-line, or outperform, semis. We are reducing our CY25 estimates and cutting PT to $225. Maintain Buy."