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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (32835)	10/17/1999 3:30:00 PM
From: Darin	Respond to of 70976

Applied Materials: AMAT ($82 1/4) - Accumulate/Select, Price Target: $98 4Q99 is tracking with upside potential to revenue, bookings, and EPS. Applied Materials is entering the last three weeks of its 4Q99 ended October. We believe that current business trends are at least tracking our revenue and EPS estimates of $1.5 billion and $0.64 versus current street consensus EPS estimate of $0.63. We believe that upside potential exists to the quarter based upon better revenue and margins. Our current estimate for new bookings in 4Q99 is $1.5 billion to $1.55 billion. Near-term, Taiwan should not materially impact revenue or bookings, and any pressure on the stock based over these concerns should be viewed as a buying opportunity. Longer-term, we believe that current street consensus numbers for FY00 are low and do not accurately reflect upside due to better revenue as well as margin expansion from the Company's lean manufacturing strategy. Our current assumptions for revenue growth in Calendar 2000 is 17%, which we believe is conservative. In addition, our net margin assumption for calendar 2000 is 18% - we believe this could approach 20% adding an additional 30 cents to our EPS estimate. Applied Materials is due to report results on November 18.