Applied Materials Inc. AMAT, +3.75% shares rose Wednesday after one analyst upgraded the stock ahead of the company’s earnings report, which is expected after the market close. Applied Materials shares advanced 3.8% to $41.55 in recent activity, compared with a 0.6% rise on the S&P 500 index SPX, +0.54% and a 1% gain on the PHLX Semiconductor Index SOX, +1.07% Susquehanna Financial analyst Medhi Hosseini upgraded Applied Materials to a positive rating from a neutral one on checks that suggest the chip design and manufacturing equipment company has secured “major memory wins” for wafer fab equipment that deposits silicon onto wafers and then etches circuits with shipments to begin in 2020. Hosseini also hiked his price target on the stock to $60 from $34. Of the 25 analysts who cover Applied Materials, 18 have buy ratings, seven have hold ratings, and none have sell ratings, with an average target price of $41.61. Analysts surveyed by FactSet expect Applied Materials to report fiscal second-quarter earnings of 66 cents a share on revenue of $3.5 billion in Wednesday’s extended session.

Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.