Zacks Investment Research downgraded shares of Applied Materials, Inc (AMAT) from OUTPERFORM to NEUTRAL on October 23, 2013, with a target price of $19.00.
Applied Materials is one of the world's largest suppliers of fabrication equipment to semiconductor, LCD and solar PV cell manufacturers. Applied's third quarter results missed the Zacks Consensus Estimate with both revenue and orders disappointing. Since Applied is a company with significant fixed costs, the bottom line has also taken a beating. Guidance also disappointed due to the continued weakness in demand. However, the strength in mobility platforms, TV capacity builds, the better utilization of resources and the recently-announced merger with Tokyo Electron are positives. Considering the weakness in the near-term outlook, we are downgrading Applied shares to Neutral.
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