J.P. Morgan Neutral On Applied Materials

J.P. Morgan Chase is out with a research report on Applied Materials, Inc. AMAT and it has a Neutral rating and a $11 price target on shares. In a note to clients, J.P. Morgan Chase writes, "Recent checks indicate even Intel (INTC, JPM Semiconductors analyst Chris Danely) has decided to delay the shipment of some SemiCap equipment. We think this is a relatively new event, as recent as last week, and is likely the primary reason that Applied Material's F4Q11 guidance, also given last week, was worse than expected. We don't know the full extent of the equipment delay, but think the overall weak PC market is playing a major role in delaying new capacity additions for the world's largest CPU maker. We think that SemiCap stocks, including AMAT, likely have more downside before finding a trough given the abrupt and significant weakness in the overall semi capex outlook for C2H11." Shares of AMAT gained 41 cents yesterday to close at $11.39.