MKM Partners Reiterates Buy on Advanced Micro Devices (AMD)

MKM Partners reiterated a Buy rating and $8.00 price target on Advanced Micro Devices (NASDAQ: AMD) as the company benefits from recent GPU launches.

Analyst Ian Ing commented, "We think both AMD and NVDA look like GPU winners here. Both companies are benefiting from recent GPU launches, with signs of abundant customer supply and attractive price-for-performance given continued premium pricing. With AMD's completed $1.3bn in offerings that retired straight debt, it is on a faster path to net income profitability (a key hurdle for some long-only investors). Our estimate adjustments due to GPU strength and recent stock and convertible offerings are described on p.2. For Buy-rated AMD, our price target remains $8, implying a 1.74x EV to FY17 sales. For Buy-rated NVDA, our new $74 price target (up from $70) is based on 37x (was 37.4x) our EPS of $1.85 plus $5.47/sh net cash."

For an analyst ratings summary and ratings history on AMD click here. For more ratings news on AMD click here.

Shares of AMD closed at $6.04 yesterday.

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