Craig-Hallum analyst Christian Schwab maintained a Buy rating but lowered his price target on Applied Materials to $65 from $76 following the company's Q2 results. In a research note to investors, Schwab said the company is seeing soft smartphone sales impacting its near-term outlook for NAND spending as suppliers hold back on near term capacity additions to maintain a healthy supply/demand environment. Schwab said that while expected to be short-term in nature, he believes this interruption in NAND spending may increase market concerns regarding a potential peak semi-cap equipment spending environment and drive valuation multiples lower.