UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Applied Materials on Improved Economic Outlook

In a report published Monday, Deutsche Bank analyst Vishal Shah reiterated a Hold rating on Applied Materials AMAT, and raised the price target from $13.00 to $15.00. In the report, Deutsche Bank noted, “While wafer fab equipment spending has been flattish over the past 4 years, we expect the sector to enter growth mode until the EUV/450mm transition occurs in ~2016-17. We expect the improving economic outlook, new technology transitions and mobility device demand to drive spending from 2014. We expect memory spending to improve gradually and foundry/logic spending to continue to show robust growth, driving overall spending up to the ~$35B range by 2016. Until EUV gains widespread adoption we expect the overall importance of etch and deposition to grow over the next 3-5 years.” Applied Materials closed on Friday at $15.20.