AMD Rises on Price Target Hike

imageStock Markets56 minutes ago (Jun 30, 2021 01:54PM ET)

(C) Reuters.

By Christiana Sciaudone — Advanced Micro Devices Inc (NASDAQ:AMD) jumped more than 4% after Bank of America (NYSE:BAC) bumped its price target higher.

Analyst Vivek Arya raised the price target to $120 from $110, StreetInsider reported. The company has demonstrated its supercomputing success with increasing market share and an endorsement by Google (NASDAQ:GOOGL). These two events suggest break-out potential in AMD’s data center segment, Arya said.

The analyst maintained a buy rating on the stock.

Even if there are supply constraints, the improving mix towards data centers could provide catch-up potential, Arya wrote in a note. “We find valuation compelling (only semis below its 3-yr median forward PE), and at 6x CY22E EV/S a nearly 50% discount to SPX Infotech growth peers. We reiterate our Buy, raise our PO to $120 (30%+ upside) from $110 now on 45x CY22E EPS (vs. 42x prior) in line with growth peers.”

Shares are down about 4% since hitting a record in January.

AMD Rises on Price Target Hike

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.