Applied Materials Receives a Buy from B.Riley FBR

By Austin Angelo

B.Riley FBR analyst Craig Ellis assigned a Buy rating to Applied Materials (NASDAQ: AMAT) today and set a price target of $77. The company’s shares closed yesterday at $51.96.

Ellis observed:

“AMAT’s F1Q18 results exceeded the Street by +$94.0M/+$0.08 and F2Q18’s outlook beat by $230.0M/$0.13 with strong margin execution plus $0.04 of tax help. Shares were flattish AMC after the day’s +4.9% gain. We believe entry points remain compelling so with positive industry and company takeaways including cash return surprises, we argue to add to AMAT. First, CEO Dickerson retains high confidence in industry fundamentals and initiated a $100B CY18/19 spending outlook, up 10% from the $90.0B CY17/18 view. Bears will now argue a CY19 Y/Y decline is possible if CY18 is up LDD Y/Y to $53.0B as LRCX (Buy; $270 PT) recently projected to assert peak cycle. However, we counter with the raft of recent evidence which points to upside spending pressure since LRCX reported, so like prospects for CY19 Y/Y gains. DD segment growth remains on tap in CY18, with Display up 30%+, Services +18% and Semi in between.”

According to, Ellis is a top 25 analyst with an average return of 34.3% and a 74.4% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Axcelis Technologies, and Rudolph Technologies.

Currently, the analyst consensus on Applied Materials is Strong Buy and the average price target is $68.67, representing a 32.2% upside.

In a report issued on January 31, Wells Fargo also maintained a Buy rating on the stock.

Based on Applied Materials’ latest earnings report for the quarter ending October 31, the company posted quarterly revenue of $3.97 billion and quarterly net profit of $982 million. In comparison, last year the company earned revenue of $3.28 billion and had a net profit of $703 million.

Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is negative on the stock.

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Applied Materials, Inc. engages in the provision of materials engineering solutions used to produce new chip and advanced display. It operates through the following segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.