BUZZ-Morgan Stanley cuts Applied Materials to 'equal-weight' on valuation concerns

KLA
Applied Materials, Inc.
Lam Research Corporation

KLA

KLAC

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Applied Materials, Inc.

AMAT

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Lam Research Corporation

LRCX

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** Morgan Stanley downgrades chipmaking tools supplier Applied Materials AMAT.O to "equal-weight" from "overweight"

** Brokerage notes AMAT has been trading at a "material valuation discount" versus peers Lam Research LRCX.O and KLA Corp KLAC.O "given execution and concerns around market share loss in China"

** We think AMAT will be a share gainer in 2026 but, given our growth forecast is in-line with broader wafer fab equipment in 2027, we think the valuation discount is unlikely to narrow in the near term - Morgan Stanley

** Average rating of 39 analysts is "buy;" their median PT is $520 - data compiled by LSEG

** Up to last close, stock has risen 69.90% so far this year


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