Morgan Stanley Raises the PT on Applied Materials (AMAT), Keeps an Equal Weight Rating

Applied Materials, Inc. (NASDAQ:AMAT) is one of the Most Profitable Large Cap Stocks to Buy According to Analysts. On August 15, Morgan Stanley analyst Shane Brett raised the firm’s price target on Applied Materials, Inc. (NASDAQ:AMAT) from $169 to $172, while keeping an Equal Weight rating on the stock.

The analyst noted that he raised the price target, taking confidence from a strong July quarter, which was slightly better than the firm’s and broader market’s expectations. This was driven by a stronger-than-expected performance in China. However, despite this, the company’s guidance for the October quarter fell short of Morgan Stanley’s forecast by around $500 million, thereby justifying a cautious rating. Brett also noted that the guidance miss is mainly due to the challenges in leading-edge logic chips and DRAM.

A technician in a clean room assembling a semiconductor chip using a microscope.

Applied Materials, Inc. (NASDAQ:AMAT) expects fiscal third-quarter revenue of around $7.2 billion, with gross margins at 48.3%.

Applied Materials, Inc. (NASDAQ:AMAT) provides equipment, services, and software for manufacturing semiconductor chips and advanced displays.

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Disclosure: None. This article is originally published at Insider Monkey.