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Applied Materials: Strong Buy Rating Backed by Robust Share Repurchase and Dividend Growth

Applied Materials: Strong Buy Rating Backed by Robust Share Repurchase and Dividend Growth

Joseph Quatrochi, an analyst from Wells Fargo, maintained the Buy rating on Applied Materials (AMATResearch Report). The associated price target was raised to $205.00.

Joseph Quatrochi’s rating is based on several strategic financial decisions made by Applied Materials that signal strong future performance. The company has announced a substantial $10 billion share repurchase authorization, which supplements the existing authorization and reflects a robust confidence in its future demand and free cash flow generation. This move is part of Applied Materials’ broader capital allocation strategy aimed at returning a significant portion of its free cash flow to shareholders.
Additionally, the company has approved a 15% increase in its quarterly dividend, marking the eighth consecutive year of dividend growth. This consistent increase in shareholder returns underscores the company’s commitment to rewarding its investors and suggests a stable financial outlook. These factors combined have led Joseph Quatrochi to assign a Buy rating to Applied Materials’ stock, indicating a positive view of the company’s financial health and growth prospects.

In another report released on March 5, Bernstein also maintained a Buy rating on the stock with a $210.00 price target.

AMAT’s price has also changed moderately for the past six months – from $178.050 to $149.990, which is a -15.76% drop .

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Questions or Comments about the article? Write to editor@tipranks.com