- Mizuho analyst Vijay Rakesh reiterated a Buy on Applied Materials, Inc (NASDAQ:AMAT) and slashed to a $90 price target, down from $150.
- Rakesh maintained a Buy on Lam Research Corp (NASDAQ: LRCX) with a $400 price target, down from $650.
- He saw significant near-term headwinds for WFE in 2023, primarily tied to China restrictions, but also a weaker macro moderating the outlook for logic and foundry.
- Last week, AMAT announced a ~$400 million quarterly impact from China restrictions, which could increase with potential Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM) cuts announced late last week and weaker macro.
- LRCX will likely report on October 19, and he could see a substantial cut to the outlook, primarily on China restrictions (Yangtze Memory Technologies Corp) and the broader macro.
- He reduced his 2023 WFE outlook from ~$88 billion to ~$75 billion (with ~$7-8 billion impact from China versus 2022 at ~$94 billion).
- Despite near-term elevated risks from geopolitical tensions, he saw AMAT and LRCX well-positioned longer-term as top global WFE market leaders, critical enablers of secular technology trends in data centers, automotive, capital intensity, and localization of WFE spending supported by governments.
- Price Action: AMAT shares traded higher by 1.03% at $75.18 on the last check Tuesday.
Children’s Place Is On A ‘Slippery Slope,’ Says Bearish Analyst: ‘There’s Little Margin For Error’
Shares of Children's Place Inc (NASDAQ: PLCE) tanked in premarket trading on Tuesday.
