AMD Price Target Lifted at Bank of America Before Analyst Meeting

Bank of America raises its price target for Advanced Micro Devices just days ahead of the semiconductor maker's analyst meeting.
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The price target on Advanced Micro Devices (AMD) - Get Report shares was lifted by Bank of America to $62 from $58 ahead of the semiconductor maker's meeting with analysts.

At the Thursday meeting Wall Street will be seeking more information on the impact of the coronavirus' on the Santa Clara, Calif., company's bottom line.

And analysts will be looking for an updated long-term financial model from AMD.

At last check AMD shares were up 2.1% to $46.44.

In a note to investors, Bank of America, which affirmed a buy rating on the company, explained the target-price hike by predicting that management will detail a long-term model that "outlines a path to $2 to $2.50 earnings per share."

Analysts also say the coronavirus outbreak will pressure AMD's prior 29% midpoint revenue outlook for fiscal 2020.

Deutsche Bank, which has a hold rating and $42 price target on AMD, said it expected "strong product/strategic execution to continue in 2020/21" with tailwinds easing throughout the year.

Deutsche Bank said it sees the current stock price as "challenging" and expects competitive pressure to increase.

Last week, AMD, along with Intel (INTC) - Get Report, Nvidia (NVDA) - Get Report, and Micron Technology (MU) - Get Report, tumbled after Microsoft  (MSFT) - Get Report warned that the coronavirus will hurt sales and earnings.

In January, AMD beat fourth-quarter-earnings estimates but missed on first-quarter sales guidance.

AMD earned an adjusted 32 cents a share on sales of $2.13 billion in the December quarter. Wall Street expected earnings of 31 cents on sales of $2.11 billion

For the full year, AMD called for revenue growth of 28% to 30%.