How Will Applied Materials (AMAT) Stock React To This Coverage Initiation?

NEW YORK (TheStreet) -- Applied Materials (AMAT) shares are down -1.1% to $22.70 on Tuesday after analysts at Piper Jaffray (PJC) assumed coverage on the stock with an "overweight" rating and $27 price target.

The software equipment provider is well positioned in an industry that is expected to see steady growth according to the firm's report.

"We believe that industry fundamentals remain positive for equipment suppliers and that AMAT is amongst the best positioned to benefit," they said.

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Separately, TheStreet Ratings team rates APPLIED MATERIALS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate APPLIED MATERIALS INC (AMAT) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

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