Applied Materials (AMAT) Stock Price Target Increased at Pacific Crest
NEW YORK (TheStreet) -- Before Friday's market open, Applied Materials (AMAT) - Get Report stock price target was raised to $26 from $23 at Pacific Crest which reiterated an "overweight" rating on the company after a solid second quarter.
Shares of Applied Materials are advancing 12.71% to $22.44 this morning after the maker of semiconductor and display manufacturing equipment reported strong financial results for the fiscal 2016 second quarter.
After yesterday's market close, the Santa Clara, CA-based company reported earnings of 34 cents per share on revenue of $2.45 billion for the quarter ended May 1. Analysts had estimated earnings of 32 cents per share on revenue of $2.43 billion for the quarter.
Applied Materials' quarter was aided by strong demand for 3D NAND, a form of flash memory, and organic light emitting diode (OLED) displays, Pacific Crest analysts wrote in a note.
"Applied Materials is continuing to benefit from customers' gold-rush mentality in 3D NAND, which should keep demand high throughout the year (but with order volatility)," analysts added. "We also underestimated the upside from OLED display expansion."
Separately, Applied Materials has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity.
You can view the full analysis from the report here: AMAT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
