Key Takeaways:
- Jefferies upgrades Applied Materials, Inc. (AMAT, Financial) to "Buy" with a $195 target price.
- AMAT is poised for growth with a projected 10% increase in adjusted EPS and a $10 billion buyback plan.
- Despite global challenges, analysts see significant upside potential in AMAT stock.
Jefferies' Strategic Upgrade and Market Impact
Applied Materials, Inc. (AMAT) has recently received a notable upgrade from Jefferies, elevating its status to a "Buy" with an ambitious target price of $195. This move comes in the wake of hurdles such as China's H20 chip sale ban. However, the company is positioned to capitalize on rising demand in DRAM and Edge technologies. With a forecasted 10% growth in adjusted earnings per share (EPS) and an aggressive $10 billion share repurchase plan, AMAT is making compelling strides toward financial resilience and increased shareholder value.
Wall Street Analysts' Price Projections
Currently, 32 analysts have provided one-year price targets for Applied Materials Inc (AMAT, Financial), proposing an average target price of $204.71, with the range extending from a high of $250.00 to a low of $164.00. This average target suggests a promising upside of 48.92% from its current trading price of $137.46. For a comprehensive view of these projections, visit the Applied Materials Inc (AMAT) Forecast page.
Brokerage Recommendations and GF Value Estimations
Further supporting the positive outlook, 35 brokerage firms collectively rate AMAT with an average recommendation of 2.0, categorizing it as "Outperform." This rating operates on a scale from 1 to 5, where 1 indicates a Strong Buy, and 5 represents a Sell.
According to GuruFocus estimates, the projected GF Value for AMAT stands at $168.24 over the next year, marking an upside of 22.39% from its current price. The GF Value metric is a GuruFocus proprietary measure that reflects the stock's fair market value based on historical trading multiples and both past and anticipated business growth. More information on these metrics is available on the Applied Materials Inc (AMAT, Financial) Summary page.
