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Applied Materials (AMAT) slumped Friday following one analyst downgrade and another that kept a hold rating on the chip gear maker's stock.

Applied Materials fell 2.05% to $46.19 after Craig-Hallum downgraded the stock to hold while Deutsche Bank decided to stick with its hold rating.

While Applied Materials beat Wall Street expectations for fiscal third-quarter revenue and earnings, analysts at Craig-Hallum cut their price target to $46 from $50, while Deutsche Bank held steady at $47.

The share price of Applied Materials, which supplies manufacturing equipment, automation software and other services to the semiconductor industry, "is fairly valued" at its current level, analyst Christian Schwab wrote.

Applied Materials beat quarterly estimates and reiterated its guidance for 2019, projecting a double-digit decline in wafer fabrication equipment sales - mid to high teens - before a rebound in 2020.

However, Applied Materials executives declined to call their fiscal third-quarter results the bottom of the current down cycle, citing the unsettled global economic environment.

The Craig-Hallum analyst cited this hesitation as a key factor in his downgrade of Applied Materials' stock.

Still, Gary Dickerson, president and CEO of Applied Materials, called the chip gear quarterly marker's results "solid" in a "market environment that remains challenging for the time being."