Mizuho Upgrades Applied Materials to Outperform with New Price Target

Applied Materials (NASDAQ: AMAT) has received a significant upgrade from Mizuho, moving from a “hold” rating to an “outperform” rating, according to a report released on October 13, 2023. This upgrade comes with a revised price target of $370.00, which marks an increase from the previous target of $275.00. Mizuho’s new target suggests a potential upside of approximately 9.87% from the company’s current trading price.

Several other investment firms have also recently reassessed their positions on Applied Materials. Notably, Needham & Company LLC raised its price target from $260.00 to $390.00 and assigned a “buy” rating in a report dated January 20, 2023. Similarly, Jefferies Financial Group increased its target from $260.00 to $360.00 in a December 15, 2022 report, while Stifel Nicolaus raised its objective from $250.00 to $340.00 in mid-January 2023. Additionally, JPMorgan Chase & Co. adjusted its price objective from $220.00 to $260.00, giving the stock an “overweight” rating.

As of now, twenty-four analysts have rated Applied Materials with a “buy” rating, while nine have issued a “hold” rating. According to MarketBeat, the consensus rating for the stock is “Moderate Buy,” with a target price averaging $298.14.

Recent Financial Performance

Applied Materials reported its quarterly earnings on November 13, 2023, achieving earnings per share (EPS) of $2.17, which exceeded analysts’ expectations of $2.11 by $0.06. The company recorded a net margin of 24.67% and a return on equity of 39.26%. Total revenue for the quarter was $6.80 billion, surpassing anticipated figures of $6.68 billion. Year-on-year, revenue decreased by 3.5%. For the upcoming first quarter of 2026, Applied Materials has forecasted EPS between $1.980 and $2.380, and analysts predict an EPS of $9.38 for the current fiscal year.

Insider Transactions and Institutional Holdings

In related news, insider trading activity has also been notable. On November 25, 2023, senior vice president Teri A. Little sold 4,000 shares of Applied Materials stock at an average price of $238.24, totaling approximately $952,960.00. Following this transaction, Little retains 84,351 shares, valued at around $20,095,782.24. Similarly, chief accounting officer Adam Sanders sold 609 shares at an average price of $255.53, resulting in a total of $155,617.77 from the sale. Over the last 90 days, insiders have sold a cumulative 8,609 shares valued at $2,044,898, with insiders owning 0.24% of the company’s stock.

Institutional trading has also seen significant activity. State Street Corp expanded its stake in Applied Materials by 1.0%, now holding approximately 38.9 million shares, valued at $7.13 billion. Geode Capital Management LLC increased its holdings by 2.0%, owning around 21 million shares worth $3.84 billion. Additionally, Capital Research Global Investors boosted its position by 225.4%, owning 14.9 million shares valued at $3.05 billion. As of now, institutional investors hold 80.56% of Applied Materials stock.

Applied Materials, headquartered in Santa Clara, California, specializes in manufacturing equipment, services, and software for the semiconductor and electronics industries. The company’s technology plays a critical role in the production of integrated circuits and display panels, supporting various stages of device fabrication.

As the market continues to respond to these developments, the outlook for Applied Materials appears increasingly positive, reflecting growing confidence from analysts and investors alike.