Shares of Advanced Micro Devices (AMD) - Get Report posted additional gains on Tuesday after receiving a second valuation-inspired upgrade in as many days, this time from Piper Sandler, which cited the recent pullback in the semiconductor company’s shares.
In a note to clients, Piper Sandler analyst Harsh Kumar upgraded the stock to overweight from neutral and lifted his one-year price target to $56 from $45 on what he sees as a good entry point for the stock following its recent coronavirus-related selloff.
The drop “provides an attractive opportunity for long-term investors,” as AMD is well-positioned to gain market share over the long term, Kumar said, pointing to strength in the company’s laptop/desktop and data center markets, where its product set is strong.
The upgrade follows in the partial footsteps of Bank of America, which on Monday lifted its own one-year price target on AMD to $62 from $58 ahead of the semiconductor maker's meeting with analysts, where executives Thursday are expected to provide an update on the impact of the coronavirus on production and demand, along with updated longer-term sales and earnings target numbers.
In its note, Bank of America analyst Vivek Arya affirmed his buy rating on the company and raised his one-year price target on what he sees as a long-term model that "outlines a path to $2 to $2.50 earnings per share”
Shares of AMD were up 3.24% at $49 in premarket trading on Tuesday.