Analyst Atif Malik of Citi maintained a Buy rating on Applied Materials, reducing the price target to $205.00.
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Atif Malik has given his Buy rating due to a combination of factors influencing Applied Materials’ current and future performance. Despite a recent decline in stock value following a sales miss, Malik believes that the company’s challenges, particularly in China and leading-edge sales, are temporary and that a rebound is likely. The management’s conservative stance on China and the unexpected dip in leading-edge sales have been identified as key reasons for the recent guidance shortfall.
Malik anticipates a modest recovery in sales in the upcoming quarters, with a slight increase expected in the January quarter. Although the earnings per share estimates for the upcoming years have been adjusted downward, Malik maintains a positive outlook on the company’s long-term growth potential, particularly in leading-edge technologies. The expected share price return of 26.7% further supports the Buy rating, suggesting that the current stock price presents a favorable entry point for investors.
In another report released today, Evercore ISI also reiterated a Buy rating on the stock with a $209.00 price target.
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AMAT in relation to earlier this year.