Morgan Stanley analyst Shane Brett CFA has maintained their bullish stance on AMAT stock, giving a Buy rating yesterday.
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Shane Brett CFA has given his Buy rating due to a combination of factors influencing Applied Materials’ market position and future prospects. Despite the recent disclosure about the impact of the BIS Affiliates Rule on AMAT’s revenue, which is expected to reduce FY26 revenue by approximately $600 million, Brett remains optimistic about the company’s potential. The analyst notes that AMAT’s disclosed impact is relatively small compared to its total revenue, and the company’s strong position in memory and TSMC investments provides a solid foundation for future growth.
Moreover, Brett highlights that AMAT’s valuation discount compared to peers like LAM and KLA presents a compelling investment opportunity. The concerns about AMAT’s market share in China, which have contributed to its underperformance, are viewed as being mitigated by its lower exposure to the Chinese market compared to its peers. This strategic positioning, coupled with the anticipated rise in China WFE localization, supports Brett’s positive outlook on AMAT’s ability to navigate the current challenges and capitalize on future opportunities.
Brett CFA covers the Technology sector, focusing on stocks such as Applied Materials, KLA, and Lam Research. According to TipRanks, Brett CFA has an average return of 19.2% and a 72.22% success rate on recommended stocks.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $240.00 price target.