UPDATE: Stifel Nicolaus Cuts PT to $13 on Applied Materials on Outlook.

Stifel Nicolaus reduces its price target from $16 to $13 on Applied Materials AMAT following outlook concerns. Stifel Nicolaus comments, "While the upside surprise to the results was not a complete surprise, admittedly, we came away disappointed with not only the near term outlook but also its October quarter as well. …On the margins side, we also came away disappointed as there now appearsto be no leverage gains for the remainder of the year (on the opex, we knew restructuring was occurring but gross margins are not likely to improve either)." AMAT closed at $10.48 on Thursday.