(AMAT) Applied Materials – Bear of the Day

Applied Materials (AMAT) is one of the world’s largest suppliers of fabrication equipment to semiconductor, LCD and solar PV cell manufacturers. Applied Materials’ third quarter results exceeded estimates, but guidance disappointed, due to utilization cuts at DRAM, NAND and foundry customers. Therefore, we think the shares will underperform in the near term.

Add to this a peaking cycle, the recent increase in debt and issuers in the TV market and we can expect significantly lower earnings. We are therefore downgrading AMAT shares from Neutral to Underperform.

We think the trend is moving downward rather than upward, not just because of our earnings growth expectation for Applied Materials, which is slightly lower than the peer group, but also because of recent adverse conditions in the market and the cyclical peaking.

APPLD MATLS INC (AMAT): Free Stock Analysis Report

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.

Comments

Powered by Facebook Comments


Similar Posts: | | Semiconductor Equipment & Materials | Technology

RSS feeds: AMAT | Applied Materials Inc. | Semiconductor Equipment & Materials | Technology |

Other Posts by | RSS Feed for this author