Cowen Reiterates Outperform on Applied Materials (AMAT) Following In-Line 4Q Results

Cowen reiterated an Outperform rating and $21.50 price target on Applied Materials (NASDAQ: AMAT) following the company's 4Q earnings report. EPS was $0.29, spot in-line with Street estimates as most line items were in line. The macro picture, however, remains clouded by industry dynamics wherein the proposed merger of its two highest quality competitors creates a meaningful overhang and competitive pressure point.

Analyst Timothy Arcuri commented, "What's good for foundry (esp TSMC) has always been good for AMAT. With betterthan-feared guidance, the outlook here is bright ahead of a more concentrated 10nm spend cycle and new products, but the elephant in the room is obviously LRCX/KLAC - ultimately negative for AMAT. In the absence of something bold (TER?), $2/share seems a long way from here. Target $21.50, still prefer LRCX."

For an analyst ratings summary and ratings history on Applied Materials click here. For more ratings news on Applied Materials click here.

Shares of Applied Materials closed at $16.53 yesterday.

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