Applied Materials initiated with an Outperform at RBC Capital

RBC Capital initiated coverage of Applied Materials (AMAT) with an Outperform rating and $385 price target The stock outperformed the SOX index but lagged US equipment peers last year due to China headwinds, weaker mature node spending, and possibly some share shifts, the analyst tells investors in a research note. The firm adds it is positive on wafer fab spending and expects Applied Materials to grow at least in line in the next 12 months.