Oppenheimer Reiterates Outperform; $16 PT on Applied Materials on Compelling Risk/Reward
Oppenheimer remains rated Outperform with a $16 PT on Applied Materials (NASDAQ: AMAT) as it believes the stock is being undervalued.
Oppenheimer notes, "AMAT continues to look good mainly because we believe the Street is napping and the stock is too cheap. Its price likely discounts any problems with macro, and also assumes that solar and display are de minimis and that silicon pricing power improves even though competitors are consolidating. Silicon and AGS should continue to deliver better margins, and we think that 2013 will be a great year for AMAT. Finally, a note of caution for know-it-alls, for social media web pages to be delivered, AMAT's tools are essential. Only with investments in semiconductor equipment tools can you make SSDs, retina displays or any of gee-whiz products of tomorrow."
AMAT closed at $10.36 on Friday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.