) with a Buy rating and $30.00 price target. In the report, Nomura noted, “The Street is preoccupied with the company's outlook for WFE spending of $37bn in 2017 and, in our view, underestimating earnings power over the next two years. We believe Applied Materials and Tokyo Electron could generate $2.00 in EPS by 2015, above consensus of $1.35 (excludes TEL merger), based on WFE spending of $33-35bn. Additionally, we see operating synergies and a lower tax rate should meaningfully boost FCF from ~60% to roughly 75%-80%. Our TP of $30 is based on 15x our 2015E EPS of $2.00 (AMAT+TEL).” Applied Materials closed on Wednesday at $19.47.