Analyst Quinn Bolton of Needham maintained a Buy rating on Applied Materials, with a price target of $240.00.
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Quinn Bolton has given his Buy rating due to a combination of factors affecting Applied Materials. Despite a recent unexpected decline in performance primarily attributed to fluctuations in China and leading-edge logic towards the fiscal year’s end, the overall trajectory aligns with expectations. The notable surprise was a reduction in the FY25 GAA revenue forecast, which was adjusted from $5 billion to $4.5 billion, with management withholding specific customer details.
Looking ahead to FY26, the company remains optimistic about DRAM growth, despite a significant year-over-year increase in ex-China DRAM for FY25, but remains cautious regarding China’s ongoing weakness and the timing of demand for leading-edge logic. Consequently, future estimates have been revised downwards. However, this presents a buying opportunity amid the current market weakness.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $200.00 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.