Morgan Stanley analyst Joseph Moore said he was surprised at the weakness of Applied Materials' outlook given peer commentary and the fact that foundry spending isn't down anywhere near as much as Applied's foundry business has been this year, but he notes that the company pointed to some served market compression as lithography and other areas crowded them out. Meanwhile, Moore believes increases in equipment revenue from DRAM customers still appear to him to be a substantial risk factor for 2019. Moore keeps an Equal Weight rating on Applied Materials shares and lowered his price target to $39 from $54.