UBS Raises Applied Materials Price Target to $515
UBS analyst Timothy Arcuri raised the price target on Applied Materials (NASDAQ: AMAT) to $515.00 (from $480.00) while maintaining a Buy rating.
“AMAT put up guidance that was even better than we expected and commentary around multi-year visibility supports our view that WFE growth will be gated largely by how fast the supply chain can ramp.
Running the numbers, AMAT’s commentary suggests a marked deceleration in the dollar growth of shipments in C2H – and while we do see cleanroom availability as an issue, the signs we see in the supply chain point more to AMAT being quite conservative on C2H to keep setting up beats/raises.
Overall, nothing here takes us away from our view that WFE will push the ~$200B level in C2027 with ~ $250B in sight for C2028 (and probably up again in C2029).
AMAT is also clearly regaining share – it seems like at least half of what it lost last year (if not more).
Net, we see ~$27 EPS in sight for C2028 which we think keeps a solid bid under the stock even at this price, and we raise our PT from $480 to $515.”
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