Analyst Charles Shi of Needham maintained a Buy rating on Applied Materials (AMAT – Research Report), reducing the price target to $195.00.
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Charles Shi has given his Buy rating due to a combination of factors related to Applied Materials’ current market position and future prospects. Despite the company reporting lower than expected guidance for the upcoming quarter, it demonstrated a strong performance in the previous fiscal quarter. This indicates that Applied Materials is navigating the challenges in the Chinese market better than its competitors.
Shi notes that the company’s early recognition of both the rise and subsequent decline in China-related revenue positions it advantageously for recovery. While its growth in China slowed compared to its peers, this suggests that Applied Materials is ahead in the correction process, potentially allowing it to rebound faster and focus on growth outside of China. Consequently, even though estimates and price targets have been adjusted slightly lower, the outlook for sustainable growth remains positive, reinforcing the Buy recommendation.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $225.00 price target.