Updated from May 13Shares of Applied Materials ( AMAT) sagged Wednesday after the leading chip-equipment vendor admitted Tuesday that sales aren't likely to grow in the current quarter. While the company's business isn't likely to get much worse, there aren't yet signs of sustainable growth that could buoy the stock. Meanwhile, Applied Materials' restructuring efforts are taking a toll on profits: In its just-completed fiscal second quarter, the company swung to a loss after shelling out $152 million to cover the costs of severance and building closures, among other things. The stock was down 68 cents, or 4.7%, to $14.88 in recent trading. At Fahnestock & Co., analyst Gerald Fleming said the growing uncertainty about the timing of a rebound could knock shares down to around $10 in the coming months. Besides the weak guidance, reported bookings fell 5% and were 15% below guidance, he noted. He has a sell rating on the stock; his firm has no banking relations with the company. Likewise, Needham analyst Cristina Osmena worries Applied Materials is likely to "suffer from a weak up cycle." "The tone of the call was less optimistic than expected and management commented that 'upstream demand from semiconductors is insufficient at the current time to justify significant increases in capacity investments,'" wrote Osmena in a research note. Osmena, who has a hold on the shares, says investors should think about taking profits based on Tuesday's close of $15.56. Needham hasn't done banking for the company. "The second half is becoming less compelling," concludes analyst Steve Pelayo of Morgan Stanley. While Applied Materials management forecast a flat market in its core wafer fab equipment business, the weak first half means it would need a hockey-stick-shaped recovery in the second half to meet that target. In fact, the company would need to post 20%-plus revenue growth in both its October and January quarters, Pelayo says.