Semiconductor components maker Applied Materials, Inc. (AMAT) on Tuesday caught s big upgrade form analysts at Goldman Sachs.
The firm boosted its rating on AMAT from “Neutral” to “Buy” while lifting its price target from $11.50 to $13.00. That new target suggests a 15% upside to the stock’s Monday closing price of $11.28.
Goldman Sachs noted the company’s newly-named President Gary Dickerson is “a significant positive for the company and likely marked the end of the multi-year underperformance in Applied Materials’ stock.” Continuing, “We estimate that if the company restructures more significantly in areas such as display and exits the solar business, that this could add $0.15 or more to full-cycle EPS.”
Applied Materials shares rose 25 cents, or +2.2%, in premarket trading Tuesday.
The Bottom Line
Shares of Applied Materials (AMAT) have a 3.19% dividend yield, based on last night’s closing stock price of $11.28. The stock has technical support in the $10 price area. If the shares can firm up, we see overhead resistance around the $12-$13 price levels.
Applied Materials, Inc. (AMAT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
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