March 28 - Applied Materials stock (AMAT, Financial) gained about 1% in extended trading on Thursday after Jefferies (JEF, Financial) upgraded the stock.
The brokerage lifted its rating to “Buy” from “Hold” and increased its price target to $195 from $185, suggesting a 32% potential upside from the day's closing price.
Jefferies pointed to a strengthening outlook for the wafer fabrication equipment sector as earnings season approaches. It expects Applied Materials to benefit from the rising demand for dynamic random-access memory (DRAM) and its relatively limited exposure to China compared to industry peers.
The upgrade comes as U.S. trade policies continue to impose tariffs on key markets, including China, Canada, Mexico, and Europe.
Jefferies also highlighted the company's valuation, noting its trailing 12-month price-to-earnings ratio stands at 19.30.
