- Nomura starts Applied Materials (NASDAQ:AMAT) at Neutral with a $40 PT, matching the Street-low target.
- Analyst David Wong cites a lower than average multiple with the near-term uncertainty of the semi equipment business.
- Wong says AMAT's display equipment operating margin trends lower than the semi equipment operating margin, which could end up putting pressure on overall margins.
- Applied Material shares are up 0.8% pre-market to $41.70.
- AMAT has a Bullish average Quant rating and a Bearish SA Authors' rating.