Applied Materials (AMAT), a provider of manufacturing equipment for semiconductor and display companies, is slated to hold an analyst day on September 21 at 1:30 pm ET. Wall Street analysts have highlighted the event as a potential catalyst for the stock, with Goldman Sachs expecting an outright guidance boost and Stifel anticipating potential commentary on a burgeoning opportunity in virtual and augmented reality.

POTENTIAL GUIDANCE BOOST: Goldman Sachs analyst Toshiya Hari said on September 12 he is bullish heading into the company's analyst day. Hari expects Applied Materials to boost its long-term earnings target to a midpoint of $2.75 from $2.00, while likely pointing to expanding market share, "healthy" industry fundamentals, favorable semiconductor technology inflections, and the company's unique opportunities in China. Given the recent strength in orders from screen manufacturers, Hari also reminds investors to watch for commentary on demand and customer base expansion in that market. Net-net, Hari sees the analyst day serving as a catalyst for Wall Street to hike its estimates for Applied Materials, and he reiterates his Buy rating and $33 target on the stock.

NEW OPPORTUNITY IN VIRTUAL REALITY: Looking to future growth drivers for Applied Materials, Stifel analyst Patrick Ho highlighted on September 14 the company's emerging opportunity in virtual and augmented reality. Going as far as calling Applied the "best positioned company" to capitalize on VR and AR, Ho sees the burgeoning tech catalyzing both its semiconductor and display businesses in coming years, driving "significant" upside potential. The analyst wouldn't be surprised if Applied commented on the opportunity at its analyst day, and though he warns that it's "challenging" to accurately forecast VR and AR, Ho gives an early estimate of $300M-$500M in new semiconductor sales for the company and $250M-$500M on the display side. He sees the opportunity emerging more fully in the 2019-2020 period, and reiterates his Buy rating and $36 target on the shares.

CITI LIFTS PRICE TARGET AHEAD OF EVENT: As recently as Monday, Citi analyst Atif Malik raised his price target on Applied Materials to $37 from $32 while reiterating his Buy rating on the stock, arguing that multiple expansion could be in the cards given the ongoing industry spend on new memory and display technologies. Outlining key topics for the analyst day, Malik is watching for positive commentary on the sustainability of its growth in OLED and an update to its financial targets, with the analyst arguing that Applied could generate $2.75-plus earnings per share.

PRICE ACTION: Shares of Applied Materials have edged down 4c, or 0.1%, to $30.26, slightly underperforming the market, in Tuesday afternoon trading. Over the last three months, the stock is up about 28%. "Before the Move" is The Fly's recurring series of exclusive stories that identify potentially market moving events, along with analyst predictions, ahead of the news.