UPDATE: JP Morgan Downgrades Applied Materials to Underweight on Share Price Run-Up
JP Morgan downgraded its rating on Applied Materials (NASDAQ: AMAT) from Neutral to Underweight with a reiterated $10 price target.
JP Morgan said, "We are downgrading our rating and trimming our ests for Applied Materials to reflect our continued bearish semi capex outlook. We think the recent run-up in the stock is a near term short opportunity as we think the upcoming earnings season and associated 2013 capex guidance by major semi device makers will be negative for AMAT and the SemiCap sector as a whole. … We think AMAT and other large cap SemiCap stocks are currently disconnected from the deteriorating industry outlook and recommend long only investors trim existing positions or recommend short investors take positions ahead of earnings season."
Applied Materials closed at $11.81 on Friday.
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