Applied Materials, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Timothy Arcuri from UBS upgraded the rating on the stock to a Buy and gave it a $285.00 price target.
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Timothy Arcuri has given his Buy rating due to a combination of factors that suggest a positive outlook for Applied Materials. The primary driver is the anticipated growth in the wafer fab equipment (WFE) market, particularly in the DRAM segment, where Applied Materials is expected to benefit significantly. Arcuri forecasts a substantial increase in WFE spending, with a notable rise in DRAM-related investments, positioning Applied Materials as a key beneficiary.
Additionally, Arcuri highlights the potential underestimation of China’s demand for WFE, which could provide further upside for Applied Materials. Despite some recent challenges, such as market share loss and unfavorable product mix, the company is expected to recover and capitalize on the strong industry upcycle. Improved management expectations and strategic efforts in China are likely to support this recovery, justifying the increased price target and Buy rating.
In another report released on November 21, Bernstein also assigned a Buy rating to the stock with a $260.00 price target.