TD Cowen analyst Krish Sankar has maintained their bullish stance on AMAT stock, giving a Buy rating today.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Krish Sankar’s rating is based on the resilience and growth potential of Applied Materials, despite the challenges posed by updated US export controls affecting their business in China. While these controls are expected to impact FY25 revenues by approximately $400 million, the company’s strengths in leading-edge foundry and logic are anticipated to drive superior performance in the Semiconductor Systems segment compared to the broader wafer fab equipment market.
Furthermore, Applied Materials maintains robust gross margins even with a less favorable mix, and they possess a substantial free cash flow projection of over $7.5 billion for FY25. The company also has significant share buyback capacity remaining, which can provide additional support to the stock. Sankar points out that while there are hurdles such as the impact of export controls on the China market, the growth in areas like Gate All Around and Backside Power Delivery, along with a potential increase in future product pricing, could further bolster the company’s growth prospects.
In another report released today, Needham also maintained a Buy rating on the stock with a $195.00 price target.