Chipmaking giant Applied Materials (AMAT) - Get Report got the nod from Stifel analyst Patrick Ho who bumps up his price target on the stock ahead of its fourth-quarter results, which Ho expects will strike a more optimistic tone about 2020.
In a research note, 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.
For the quarter ended July 28, Applied Materials 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 67 cents a share on revenue of $3.7 billion.
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