AMD (AMD) PT Cut to $106 at Goldman Sachs After Milan Launch

March 16, 2021 7:08 AM EDT
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Goldman Sachs analyst Toshiya Hari lowered the price target on AMD (NASDAQ: AMD) to $106.00 (from $110.00) after attending the company's 3rd-generation EPYC processor launch. Codenamed Milan, this represents a 7nm-based server CPU.

The analyst reiterated a Buy rating, highlighting AMD as a Conviction List name, and stated "the event reinforced our view that the launch of Milan will drive higher levels of adoption across, not only cloud service providers, but also enterprise customers, and in turn, improve overall company gross margins." Regarding valuation, he cut CY21/22/23 revenue by 1% on weaker-than-expected GPU volume and semi-custom volume and stated "Our updated 12-month price target of $106 (down from $110) is based on 31x (unchanged) our CY2022 non-GAAP (incl. SBC) estimate of $3.43 (down from $3.55)."

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