Morgan Stanley Lowers Expectations of Applied Materials

According to a recent report, Morgan Stanley is lowering expectations on Applied Materials AMAT due to their belief that semi cap fundamentals are not a peak cycle but in mid cycle with weak consumer PC demand. In the report, Morgan Stanley said, "We model a ~30% peak to trough semi bookings decline or in-line with prior cycle through Oct with a recovery in Jan qtr. We model resumption in margin expansion after a two-qtr pause through restructuring and services business." AMAT closed yesterday at $13.71.