- 17 Aug '17 at 7:28 pm #11255
[article]146[/article]18 Aug '17 at 1:19 am #11256Super HarleyParticipant
Another company to benefit from the rush in technology advances in the past few years and the quest for speed and big data.19 Aug '17 at 12:15 am #11288Helmholtz WatsonParticipant
In the conference call CEO Gary Dickerson and chief financial officer Bob Halliday both talked at length about the health of their markets.
In particular, Dickerson said demand continues to rage for DRAM and memory chips, while capacity additions have been low, a kind of perfect storm for that market. One of the benefits today is DRAM and NAND maker Micron Technology $MU up 82 cents or almost 3%, at $30.44.
Dickerson and Halliday also spoke at length about the display market, their other big opportunity for equipment sales, saying tools to make giant, 10-square-millimeter sheets of glass, called “Gen 10.5,” are going into high gear in order to make larger television sets. The display market then has another wave of spending to look forward to with the proliferation of OLED display for smartphones and other screens.
Via Barrons21 Aug '17 at 8:12 pm #11314
From last week: Morgan Stanley Analyst Moore reiterates an Overweight rating and raises his price target to $56 from $52.
“Memory spending is already high, but memory customer’s cash flows are even higher, and as long as memory remains robust (which we expect to persist at least through mid 2018) there will continue to be an upward bias to numbers.”21 Aug '17 at 8:14 pm #11315
Credit Suisse’s Farhan Ahmed reiterates an Outperform rating and raises his price target to $62 from $54.
“Big picture, growth has accelerated structurally as Semi capex to revenues is increasing, and Semis are now growing faster than GDP.”
“Current valuations are continuing to ignore structural improvements in industry; we expect multiples to expand as investors start to realize the consistency of growth.”
Ahmed adds “very positive for Memory industry” with AMAT seeing “15% bit growth for calendar 2017 to 2018.”21 Aug '17 at 8:16 pm #11316
Mehdi Hosseini of Susquehanna Financial has a Neutral rating and a $42 price target
Says big question is what $AMZT will say about 2020 earnings outlook when it holds its analyst day meeting in New York on September 27th.
“All in all, AMAT’s execution and delivery post failed TEL [Tokyo Electron] merger has been exceptional,” writes Hosseini, “which is reflected in the current earning run rate of ~$4.0 (up ~ 3x since ’15). The key question looking forward is what will be the earning power in ’20.”
“AMAT’s annualized earning power (in ’17) is now tracking close to $4.00, which is a few years ahead of target and makes us wonder what will AMAT guide to for ’20 when it holds its annual Analyst Day.”
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