Applied Materials shares fell Tuesday, after New Street Research downgraded its rating on the semiconductor company's shares.
New Street Research analysts lowered their rating on Applied Material stock to neutral from buy. According to the analysts, Applied Materials’ valuation is still very reasonable based on the iShares Semiconductor ETF index. However, they don’t view a near-term catalyst for a rerating. While they are maintaining their “strong positive long-term conviction”, tactical concerns made them downgrade the shares to neutral. They have affirmed the $140 target price.