KeyBanc raised its price target on Applied Materials (AMAT) stock to $550 from $450, maintaining an Overweight rating.
The firm cited better-than-expected Q2 fiscal results and guidance above consensus. 25 analysts revised earnings upward for the upcoming period, per data.
Applied Materials highlighted systems growth exceeding 30% for the year, with momentum expected to continue into 2027. The stock delivered a 154% return over the last year.
Growth is driven by leading-edge logic, DRAM, and advanced packaging. Q2 gross margin of 50% was the highest in over 25 years.
KeyBanc increased estimates, noting product innovations driving margin expansion. Forward visibility is at all-time highs, with wafer fab equipment growth seen through 2028.
In recent news, Applied Materials reported Q2 EPS of $2.86, beating the $2.68 consensus, and record revenue of $7.91 billion.
