Following a meeting with management, UBS analyst Stephen Chin reiterated his Buy rating on Applied Materials, Inc. (NASDAQ:AMAT) with a price target of $28.50, marking a 12% increase from current levels.

Chin believes that the company’s “semicap tools for selective removal and also e-beam inspection” will allow Applied Materials to outpace its competition in sales over the next few years. The analyst is also optimistic about long-term growth with “healthy 3D NAND capex trends and incremental fab spending in China.” Chin also anticipates seeing more growth in the “metrology and inspection semicap equipment.”

According to TipRanks, the analyst has a success rate of 63% with an average return of 5.1% per recommendation.