TD Cowen analyst Krish Sankar has maintained their bullish stance on AMAT stock, giving a Buy rating yesterday.
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Krish Sankar has given his Buy rating due to a combination of factors that highlight both challenges and potential upsides for Applied Materials. Despite the short-term disruptions caused by weakened demand in China and the removal of pending export licenses from the backlog, the long-term technological trends remain favorable for the company. The unexpected strength in non-China lagging edge markets also provides a positive contrast to some of its peers.
While the guidance for the upcoming quarter fell short of expectations, largely due to uncertainties in China and delays in leading-edge projects, there are still opportunities for growth. The potential approval of China licenses, although not anticipated in the immediate quarter, could offer significant upside. Furthermore, the sharp revenue decline anticipated is reminiscent of past cycles where the stock eventually rebounded. The company’s ongoing engagement with multinational customers in China, particularly in NAND, also suggests a resilient demand that could support future growth.
Sankar covers the Technology sector, focusing on stocks such as Apple, Applied Materials, and MKS. According to TipRanks, Sankar has an average return of 18.1% and a 58.38% success rate on recommended stocks.