Sundararajan: We're Now Worried About Applied Materials

In a report published Tuesday, WR Hambrecht analyst Srini Sundararajan maintained a Hold rating on

, with a price target of $18. Analyst Srini Sundarajan pointed out that with the stepping down of Dr. Randhir Thakur, Applied Materials was left with an executive staff none of whom had the "prior experience of managing more than what would amount to more than one division of AMAT." "Even Gary Dickerson, the current CEO, has only managed the equivalent of one division of AMAT at any one-time, i.e. inspection at KLA-Tencor and implant at Varian Semi," Sundarajan wrote. In the repot WR Hambrecht noted that Applied Materials was losing share, partly on account of industry issues and partly due to issues unique to the company in "both implant and inspection." Concerns surrounding the company's growth strategy had emerged after the failure of the

merger deal to go through. Sundarajan expects the upcoming three quarters to be relatively soft, with 3D NAND "likely being the important area of investment."