What happens when a tech giant’s impressive earnings report can’t shield it from a market nosedive? As Applied Materials Inc. (NASDAQ:AMAT) experiences a surprising slump, analysts weigh in on the forces at play behind the scenes. Shares of Applied Materials declined in early trading on Friday, despite the company’s upbeat fiscal third-quarter results reported on Thursday.
The announcement came amid an exciting earnings season. Here are some key analyst takeaways.
BofA Securities On Applied Materials
Analyst Vivek Arya downgraded the rating from Buy to Neutral, while reducing the price target from $190 to $180.
Applied Materials has high exposure to the over-supplied mature node, or ICAPS (IoT, Communications, Automotive, Power and Sensors), especially in China, Arya said in the downgrade note. The company also has high exposure to “certain leading-edge customers,” like Intel Corp (NASDAQ:INTC), he added.
Both these are likely to continue weighing on Applied Materials’ growth …