B.Riley FBR Sticks to Their Buy Rating for Applied Materials Inc (AMAT)

By Carrie Williams

In a report released today, Craig Ellis from B.Riley FBR maintained a Buy rating on Applied Materials Inc (AMATResearch Report), with a price target of $54. The company’s shares closed on Friday at $47.15.

Ellis noted:

“Semi Cap bellwether Applied Materials (AMAT) reports F3Q19 8/15 AMC with a 4:30PM ET CC. We see makeable F3Q estimates and an in-line guide versus the Street, the latter better than feared. On near term items, 2H spending mix shift from Memory toward Foundry/Logic (F/L; i.e. INTC spending mix to 90% Logic with Memory just 10%, TSMC’s raise) has moderately benefited those over-indexed to F/L (i.e. ASML and KLAC) while clipping the more Memory- centric (i.e. LRCX and ACLS). Four brokers cut F4Q estimates by an average of $115.8M/3.1%, matching LRCX’s outlook miss, but our bottoms-up analysis suggests greater resiliency given higher F/L mix. More broadly, we expect strong quarterly execution under CFO Durn on margins, OCF, and share repurchase as cash redeploys for value creation.”

According to TipRanks.com, Ellis is a 4-star analyst with an average return of 5.4% and a 51.8% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Axcelis Technologies, Rudolph Technologies, and Skyworks Solutions.

Applied Materials Inc has an analyst consensus of Strong Buy, with a price target consensus of $51.38.

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The company has a one-year high of $52.42 and a one-year low of $28.79. Currently, Applied Materials Inc has an average volume of 9.75M.

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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.