Analyst Shane Brett CFA from Morgan Stanley maintained a Hold rating on Applied Materials and increased the price target to $172.00 from $169.00.
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Shane Brett CFA has given his Hold rating due to a combination of factors impacting Applied Materials’ performance. The company’s revenue for the July quarter exceeded expectations, primarily driven by stronger-than-anticipated performance in China, with China revenue reaching $2.55 billion. However, the outlook for the October quarter was less optimistic, with revenue guidance falling short by approximately $800 million, largely due to issues in the Foundry Logic segment rather than China-related challenges.
The revision of the fiscal year 2025 guidance for GAA from $5 billion to $4.5 billion, attributed to ‘nonlinear demand,’ further contributed to the cautious outlook. Additionally, while DRAM revenue showed potential for a record year, it ultimately did not meet expectations. These mixed signals, with strong performance in some areas but significant shortfalls in others, led Shane Brett to maintain a Hold rating on Applied Materials’ stock.
In another report released today, Deutsche Bank also maintained a Hold rating on the stock with a $170.00 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.