D.A. Davidson & Co. Raises PT On Applied Materials
In a research note released Thursday, D.A. Davidson analyst Thomas Diffely increased his price target on Applied Materials (NASDAQ: AMAT) from $21 to $25 and reiterated a Buy rating.
The analyst increased the price target based on an addition in potential earnings from the Tokyo Electron acquisition. The acquisition is expected to close in the third-quarter of 2014.
In addition, the price target was increased on the basis of the company cutting costs, lowering taxes and repurchasing shares in accordance with its proposed plan. These factors will enable the company to increase its earnings power over the next few years.
The company has currently issued guidance of $2.40 EPS within the next two to three years; the analyst believes that $1.80 is more reasonable and appropriate.
The estimate also took into account a tax rate of 17 percent.
Shares of the company are down less than one percent, but are up 23 percent year-to-date.
Latest Ratings for AMAT
|Dec 2016||Goldman Sachs||Downgrades||Buy||Neutral|
|Oct 2016||Goldman Sachs||Maintains||Buy|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.