- Craig-Hallum downgrades Applied Materials (NASDAQ:AMAT) from Buy to Hold and cuts $4 off the target to $46.
- The firm cites management's earnings call comments that suggested limited visibility into the timing or magnitude of a recovery.
- AMAT CFO Dan Durn, on the call: "While I’m still not ready to call the bottom of the cycle, I see positive leading indicators of future growth in memory."
- The company doesn't expect any recovery until 2020, and thinks that will be a "gradual U-shaped" recovery.
- AMAT forecasts $2.2B as a "good baseline" for Semi Systems revenue early next year with AGS and display flat with Q4, indicating AMAT has passed the bottom of the display cycle.
- Applied Materials shares are down 2.5% pre-market to $46. AMAT has an Outperform average Sell Side rating.