Semiconductor maker Advanced Micro Devices (AMD) - Get Report rose on Monday, extending Friday's gains, after the stock received another price-target upgrade, this time from analysts at Cowen who feel CEO Lisa Su's leadership and the company's general direction are looking long-term positive.
In a research note to clients, Cowen analyst Matthew Ramsay raised his one-year price target on AMD to $47 from $40 following a recent meeting with Su, which he came away from "pleasantly surprised at the long-term nature of investor conversations."
Ramsay noted that the positives outweighed the "near-term competitive noise," adding that "AMD's consistent track record of execution under [Su's] leadership, and stable roadmap, is increasingly resonating with customers and investors."
The price-target increase follows on the heels of RBC Capital Markets analyst Mitch Steves' move last Friday to lift his one-year target to $50 from $44 on what he sees as improving demand for data-center products.
He said that while AMD's prospects in 2021 are "admittedly unclear," 2020 has become more attractive. He added that the company's competitive edge will not see a change of competition in a meaningful way until around the end of the third-fourth quarters.
Last month, AMD reported mixed third-quarter results and fourth-quarter guidance. Adjusted earnings 18 cents a share, in line with Wall Street expectations. Revenue was $1.8 billion, just below estimates of $1.809 billion.
Most analysts left their ratings calls and price targets unchanged following the results, though several expressed optimism that the company appears to be on track for strong sales and earnings in 2020.
Shares of AMD were up 3.27%, or $1.26 a share, at $39.82 on Monday.