JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com - Wolfe Research has lowered its price target on Applied Materials (NASDAQ:AMAT) to $200.00 from $230.00 while maintaining an Outperform rating on the semiconductor equipment manufacturer. The company, currently valued at $151 billion, maintains strong financial metrics with a "GOOD" overall health score according to InvestingPro analysis.
The research firm sees a path to $11 in earnings power for Applied Materials over time, with the new price target based on approximately 18 times that earnings potential, largely in line with the company’s average price-to-earnings ratio of about 17 times over the past three years. The company currently trades at 22.9x earnings, with trailing twelve-month revenue of $28.1 billion and robust profit margins of 48%.
Wolfe Research models calendar year 2026 revenue of $29 billion and earnings per share of $9.70, which puts the stock at just under 17 times earnings, continuing to give Applied Materials a discount to most semiconductor equipment peers. InvestingPro data reveals the company has maintained dividend payments for 21 consecutive years, with 7 years of consecutive dividend increases, demonstrating strong financial stability. Get access to 12 more exclusive ProTips and comprehensive analysis with InvestingPro.
The firm’s 2026 estimates now assume a 10% year-over-year decline in China, approximately 11.5% year-over-year DRAM growth, 7% year-over-year growth at TSMC, and a 35% year-over-year decline in NAND.
Wolfe Research notes that Applied Materials has underperformed some competitors, with its stock down 7% over the last 12 months compared to KLA Corporation’s 20% gain and Lam Research’s 27% increase, though it has outperformed ASML’s 20% decline.
In other recent news, Applied Materials reported earnings per share for the July quarter that surpassed consensus estimates by 5%. However, the company’s outlook for the October quarter fell 11% short of expectations due to challenges in China and fluctuations in leading-edge foundry and logic revenues. Following these results, Stifel adjusted its price target for Applied Materials to $180 from $195, maintaining a Buy rating despite the weaker-than-expected fiscal fourth-quarter outlook. Evercore ISI reiterated an Outperform rating with a price target of $209, while Goldman Sachs maintained a Buy rating with a $215 price target, noting a $500 million drop in China-related revenue. Barclays kept its Equalweight rating and a $170 price target, highlighting a 24% quarter-over-quarter decline in Chinese revenue. Summit Insights downgraded the stock from Buy to Hold, expressing concerns over U.S. government export restrictions to China and broader market headwinds. These developments reflect ongoing challenges and varied analyst perspectives on the company’s future performance.
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