BofA has revised its price target for Applied Materials (AMAT, Financial), reducing it to $190 from a previous $205 while maintaining a Buy rating for the stock. Despite this adjustment, the firm remains optimistic about U.S. chip vendors' first-quarter performance, anticipating that results will surpass initial expectations due to a likely conservative outlook and increased demand driven by tariff-related moves.
Nonetheless, potential scenarios involving tariffs could impact future sales and earnings. In a moderate tariff situation, the firm projects that sales could decline by 4% to 6% on average, with a corresponding earnings per share (EPS) reduction of 12% to 13%. In a more severe tariff scenario, the group could face sales drops averaging 9% to 12% in 2025 and 2026. Given these uncertainties, BofA has adjusted its targets across the semiconductor sector to better reflect the evolving market conditions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 32 analysts, the average target price for Applied Materials Inc (AMAT, Financial) is $204.71 with a high estimate of $250.00 and a low estimate of $164.00. The average target implies an upside of 40.74% from the current price of $145.45. More detailed estimate data can be found on the Applied Materials Inc (AMAT) Forecast page.
Based on the consensus recommendation from 35 brokerage firms, Applied Materials Inc's (AMAT, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Applied Materials Inc (AMAT, Financial) in one year is $168.43, suggesting a upside of 15.8% from the current price of $145.45. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Applied Materials Inc (AMAT) Summary page.
