Applied Materials Tanks Even As Morgan Stanley Hikes Stock Price Target

Key Stats for Applied Materials Stock

• Price change for Applied Materials stock: -7%
• $AMAT Stock Price as of Jul. 6: $593
• 52-Week High: $740
• $AMAT Stock Price Target: $587

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What Happened?

Applied Materials (AMAT) stock is down after Morgan Stanley raised its price target from $502 to $647. That implies more than 12% upside from today’s price.

Morgan Stanley kept an “equal weight” rating, but the big jump in target price is still turning heads.

• Beyond Morgan Stanley, Stifel Nicolaus set a $530 target back in May,
• HC Wainwright went as high as $850 in late June,
• B. Riley Financial bumped its target to $790.
• Goldman Sachs and Argus also raised their targets earlier this year, both slapping “buy” ratings on the stock.
• Overall, Wall Street stays pretty upbeat on Applied Materials stock.
• The consensus rating is “Moderate Buy,” with 27 buy ratings, 1 strong buy, and 7 holds. The average price target across all these analysts comes in at $558.09, which is below where the stock trades now, showing just how quickly sentiment has shifted toward the bullish side.

This optimism follows a strong earnings report from mid-May.

Applied Materials posted $2.86 in earnings per share, beating expectations of $2.68. Revenue came in at $7.91 billion, topping the $7.68 billion analysts had penciled in.

That’s an 11.4% increase in revenue compared to the same quarter last year. The company’s net margin stood at 29.31%, with return on equity at just under 37%.

Looking ahead, Applied Materials has guided for Q3 earnings between $3.16 and $3.56 per share. For the full year, analysts expect the company to post $12.11 in earnings per share.

One thing worth noting: some company insiders have been selling shares recently.

• Senior VP Omkaram Nalamasu sold over 24,000 shares in mid-June, and
• another executive, Prabu Raja, sold 50,000 shares in early June.
• Combined, insiders have sold more than $169 million worth of stock over the past 90 days.
• That’s not necessarily a red flag on its own, but it’s a detail investors often like to track alongside all the positive analyst coverage.

See analysts’ growth forecasts and price targets for Applied Materials stock (It’s free) >>>

What the Market Is Telling Us About Applied Materials Stock

The wave of price target increases across Applied Materials stock and its peers tells us something simple: Wall Street sees the current chip equipment boom as durable, not a short-term spike.

With demand for AI chips still running hot, companies that make the machines used to build them are being rewarded.

That said, with APLD stock trading 25% below its 52-week high and analysts like Morgan Stanley maintaining “equal weight” rather than a “buy” rating, there’s a sense that some of this good news may already be reflected in the price.

Investors will want to watch whether Applied Materials stock can keep delivering the kind of earnings beats that justify these higher targets going forward.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!