Morgan Stanley cuts Applied Materials target to $563 from $642 on a lower multiple, keeps Equal-Weight

Morgan Stanley cut its Applied Materials price target to $563 from $642 and kept its Equal-Weight rating. The change came from a lower earnings multiple, 22 times instead of 26 times, even though the firm raised its 2027 revenue estimate to $50.7 billion and its 2027 EPS estimate to $20.92.

• Price target: $642 to $563, about -12%
• Earnings multiple: 26x to 22x
• 2027 revenue estimate raised to $50.7B
• 2027 EPS estimate raised to $20.92