AMD (AMD) PT Raised to $8 at MKM Partners

MKM Partners analyst Ian Ing reiterated a Buy rating and raised its price target on AMD (NASDAQ: AMD) to $8.00 (from $6.30) which they believe is reasonable ahead of sustained earnings leading to earnings multiple based valuations. This represents a 1.76x EV/17 Sales ratio using our above-Street sales estimates.

Ing said the stock's valuation versus peers is attractive: "This EV/Sales multiple remains at the low-end of the range within our coverage universe. ON (Buy, $9.70, $13 PT), MU (Buy, $13.51, $19 PT) and MRVL (Neutral, $11.30, $14 FV) within the same valuation peer group," he said.

In addition, the valuation is attractive on historicals given prospects: "For AMD, forward EV/Sales multiples have recently trended toward the upper end of six-year historicals, reflecting improved prospects for the company driven by the new product pipeline including Zen server in 1H17," Ing added.

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 $6.47 yesterday.

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