AMAT

Applied Materials Inc

TMT


Presented:07/26/2018
Price:$47.17
Cap:$47.55B
Current Price:$191.02
Cap:$157.48B

Presented

Date07/26/2018
Price$47.17
Market Cap$47.55B
Ent Value$51.33B
P/E Ratio15.83x
Book Value$6.99
Div Yield1.7%
Shares O/S1,008.05M
Ave Daily Vol13,156,372
Short Int1.74%

Current

Price$191.02
Market Cap$157.48B
Applied Materials, Inc. engages in the provision of materials engineering solutions used to produce new chip and advanced display. It operates through the following segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment includes semiconductor capital equipment for deposition, etch, ion implantation, rapid thermal processing, chemical mechanical planarization, metrology and inspection, and wafer level packaging. The Applied Global Services segment provides solutions to optimize equipment, performance, and productivity. The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays, organic light-emitting diodes; coating systems and display technologies for television; personal computers, tablets, smart phones, and consumer-oriented devices. The company was founded on November 10, 1967 and is headquartered in Santa Clara, CA.

Publicly traded companies mentioned herein: Applied Materials Inc (AMAT), ASML Holding NV (ASML), Lam Research Corp (LRCX)

Highlights

The presenter believes that negative sentiment surrounding a downturn in DRAM and NAND in 2H 2018 will be assuaged, and also that the fear of a cyclical decline, or near-term softness, in wafer fab equipment (WFE) is unfounded. As such, he is long shares of Applied Materials (AMAT), and thinks patient investors may realize 45% upside over the next 12 - 18 months. The $70 target assumes AMAT can reach $5.25 of EPS in 2019 and the stock trades at 13x (versus the Street at $4.50 - $4.70 for 2019 EPS).

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Idea Discussion

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