Mark Lipacis, an analyst from Evercore ISI, reiterated the Buy rating on Applied Materials. The associated price target remains the same with $209.00.
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Mark Lipacis has given his Buy rating due to a combination of factors that highlight Applied Materials’ potential for future growth. Despite a recent earnings miss attributed to challenges in China and fluctuations in leading-edge revenues, the company’s stock is trading at an attractive discount compared to its peers. This valuation presents a compelling risk/reward opportunity for investors.
Furthermore, Applied Materials is strategically positioned to benefit from key trends in the semiconductor industry, such as advancements in GAA, Backside Power, and advanced packaging technologies. While there are short-term headwinds, including a decline in China revenues and DRAM contributions, the company anticipates significant growth in advanced node DRAM and NAND recovery. These factors, combined with a strong performance in the July quarter, support the optimistic outlook and justify the Buy rating.
Lipacis covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Microchip, and Nvidia. According to TipRanks, Lipacis has an average return of 25.8% and a 67.36% success rate on recommended stocks.
In another report released today, Citi also maintained a Buy rating on the stock with a $205.00 price target.