2 Applied Materials Analysts See 'No Big Surprises' And Strong Demand, But Are There Clouds On The Horizon?

Applied Materials, Inc. AMAT reported adjusted earnings of $1.94 a share on sales of $6.52 billion for the second quarter, surpassing Street expectations of $1.78 a share in earnings on sales of $6.27 billion. The company also raised its guidance for fiscal 2023.

Morgan Stanley On Applied Materials

Analyst Joseph Moore maintained an Equal-Weight rating and price target of $115.

“It's a good result, all things considered,” Moore said in a note. He added that there were “no big surprises” in the figures reported by Applied Materials.

“We still see material downside to wafer fab equipment next year to the low $80 bn range, but the backdrop of recent supply constraints sets the equipment industry up for numbers to remain better for longer even with that backdrop,” the analyst further wrote.

Check out other analyst stock ratings.

BofA Securities On Applied Materials

Analyst Vivek Arya reiterated a Buy rating, while raising the price target from $118 to $125.

“Demand still outpaces supply by ~$300mn, as foundry/logic strength more than offset memory weakness,” Arya said in a note.

Although management indicated that incremental capacity should help sequential growth for the next few quarters, “concerns of customer (both memory and logic/foundry) capex pushouts/reductions remain, prompting us to be somewhat conservative in AprQ and beyond (vs. mgmt),” Arya added.

AMAT Price Action: Shares of Applied Materials had declined by 3.89% to $104.06 at the time of publication Friday.

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Posted In: Analyst ColorEarningsNewsPrice TargetReiterationAnalyst RatingsMoversTechTrading IdeasBofA SecuritiesJoseph MooreMorgan StanleysemiconductorsVivek Arya
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