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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (9910)	5/20/2004 3:13:03 PM
From: Proud_Infidel	Read Replies (2) \| Respond to of 25522

Not sure if these were posted: Applied Materials "overweight," estimates raised Wednesday, May 19, 2004 1:52:20 PM ET Lehman Brothers NEW YORK, May 19 (New Ratings) - Analyst Edward C White of Lehman Brothers maintains his "overweight" rating on Applied Materials (AMAT.NAS), while raising his estimates for the company. In a research note published this morning, the analyst mentions that the company reported its April quarter revenues ahead of the estimates and the consensus. The healthy April quarter results reflect Applied Materials' potential to post above industry average results in the forthcoming quarters, Lehman Brothers says. The EPS estimates for FY04 and FY05 have been raised from $0.80 to $0.86 and from $1.20 to $1.25, respectively. *********************** Applied Materials "buy," target price reduced Wednesday, May 19, 2004 2:07:37 PM ET First Albany NEW YORK, May 19 (New Ratings) - Analysts at First Albany maintain their "buy" rating on Applied Materials (AMAT.NAS), while raising their estimates for the company. The target price has been reduced from $30 to $24. Shares of Applied Materials, an information infrastructure company and world leader in semiconductor manufacturing equipment, are currently trading at $18.85. According to First Albany's research note published this morning, the company reported robust 2Q04 results, with EPS ahead of the consensus. Applied Materials’ q/q bookings growth outperformed the 30% guidance by 2% during the quarter. The company has projected 5-10% and 5% sequential growth in bookings and revenues, respectively, for 3Q04. According to First Albany, the company is focusing on boosting its service revenue growth, as this would support revenues during a downturn. Applied Materials’ attempts to boost this business segment may put pressure on the company’s gross margins in the near term, the analysts say. The EPS estimates for 3Q04, 2004 and 2005 have been raised from $0.25 to $0.26, from $0.89 to $0.93 and from $1.09 to $1.12, respectively. The P/E estimates for 2004 and 2005 are 20.3x and 16.8x, respectively. First Albany maintains its "buy" rating on Applied Materials. ********************* Applied Materials "outperform," estimates raised Wednesday, May 19, 2004 2:06:46 PM ET Bear Stearns NEW YORK, May 19 (New Ratings) — Analyst Michael O’Brien of Bear Stearns reiterates his "outperform" rating on Applied Materials (AMAT.NAS), while raising his estimates for the company. The target price is set to $26. Shares of Applied Materials, a leading global semiconductor capital equipments provider, are currently trading at $18.85. According to Bear Stearns’ research note published this morning, Applied Materials reported its 2Q FY04 earnings ahead of the guidance and the consensus. The analyst mentions that the company’s quarterly results were broadly in-line with the recently reviewed estimates. Applied Materials’ new orders increased by 32% y/y during the quarter, Bear Stearns says. Applied Materials is likely to witness several large order gains later this year, the analyst says. The company anticipates order growth of 5%-10% for the July quarter. Bear Stearns expresses its optimism regarding Applied Materials’ re-accelerated orders growth in the October quarter and the company’s robust margins expansion in the near term. The EPS estimates for FY04 and FY05 have been raised to $0.84 and to $1.18, respectively. Bear Stearns reiterates its "outperform" rating on Applied Materials. ********************* Applied Materials initiated with "buy" Wednesday, May 19, 2004 1:33:39 PM ET Needham & Co NEW YORK, May 19 (New Ratings) - Analysts at Needham & Co initiate coverage of Applied Materials (AMAT.NAS) with a "buy" rating. The target price is set to $30.

To: robert b furman who wrote (9910)	5/20/2004 3:37:16 PM
From: Sam Citron	Read Replies (2) \| Respond to of 25522

Hi Bob, That sounds even more plausible to me. If that is the case, AMAT takes a hit on the "first increment" and only makes up for it later as it gets into the sweet spot of the cycle. But what if the amplitude of the cycle is attenuated as Cary postulates? If INTC's purchases remain incremental and everybody purchases new equipment from now on in a very disciplined fashion, so as not to create excess capacity, isn't such a change a negative for AMAT and NVLS? Don't they end up selling less equipment and losing some bargaining power relative to their customers? Sam

To: robert b furman who wrote (9910)	5/21/2004 8:54:08 AM
From: Bookdon	Read Replies (2) \| Respond to of 25522

I am a retired AMAT sales manager. "Early adapters" (Intel-IBM)only care about specs, so price is VERY secondary. AMAT sets a very profitable price (but invests a lot of engineering effort to make sure that the specs are met). The next wave of buyers only cares about delivery date(need to play "catch up" with Intel-IBM), so they pay a high price, too. The main wave of buyers(and now there is substantial direct competition to the AMAT tool)cares about price, so AMAT will make deals (but the learning curve has reduced the cost of manufacture, so margins are still pretty good). The AMAT key (as is that of Intel)is to get there with the leading edge product first, and then play with margins and the learning curve to maintain profitability.