Chipmaker Applied Materials (AMAT) - Get Report on Tuesday received a price-target upgrade from Stifel research analyst Patrick Ho ahead of the company's fourth-quarter results, which Ho expects will strike a more optimistic tone with respect to the companys 2020 outlook. 

In a research note to clients, Ho raised his one-year price target on Applied Materials to $67 from $57 and maintained his buy rating on the company's shares ahead of its fourth-quarter results, which will be released on Thursday after the markets close.

Ho noted that large-cap names like Applied Materials deserve higher multiples, particularly when compared with its semiconductor peers. Ho also expects a "more optimistic" tone on the company's earnings call that helps set the stage for a strong 2020.

Applied Materials produces and distributes both semiconductor chips as well as components like displays that they are embedded in. 

For the quarter ended July 28, the Santa Clara, Calif., company posted adjusted earnings of 74 cents a share vs. $1.04 a year earlier. Sales declined 14% to $3.56 billion from $4.16 billion. For this quarter, analysts polled by FactSet are expecting earnings of 76 cents a share on revenue of $3.7 billion.

The company's shares closed last Monday at $56.59, close to their 52-week high of $57.29.

Shares of Applied Materials were up 0.64%, or 36 cents a share, at $56.95 in morning trading on Tuesday.