Applied Materials, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Chris Caso from Wolfe Research maintained a Buy rating on the stock and has a $200.00 price target.
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Chris Caso has given his Buy rating due to a combination of factors that suggest potential for future growth despite short-term challenges. Applied Materials reported a revenue of $7.3 billion for the July quarter, which was slightly above their guidance midpoint. However, the guidance for the October quarter was set at $6.7 billion, which is below market expectations. This was attributed to a decrease in revenue from China and reduced spending in the foundry and logic segments, particularly from major players like Intel and TSMC.
Despite these challenges, Caso sees potential in the company’s long-term growth prospects. The analyst’s estimates for 2026 suggest a revenue of $29 billion and an EPS of $9.70, which implies a valuation that is still attractive compared to its peers. The anticipated growth in DRAM and TSMC, alongside a strategic approach to navigating the current market conditions, supports the Buy rating. Caso believes that the current valuation offers a discount, providing a favorable entry point for investors looking at the semiconductor capital equipment sector.
In another report released today, Evercore ISI also reiterated a Buy rating on the stock with a $209.00 price target.
AMAT’s price has also changed moderately for the past six months – from $169.200 to $188.240, which is a 11.25% increase.