AMD (AMD) Price Target Raised at Cowen, Analyst Expects 'Very Solid Results'

January 18, 2022 10:42 AM EST
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Cowen analyst Matthew D. Ramsay reiterated an Outperform rating and raised the price target on AMD (NASDAQ: AMD) to $150.00 per share from the prior $145.00.

The analyst expects to witness “very solid results” when AMD reports next week, further solidifying his thesis that AMD “remains one of the best organic growth stories in semis.”

“The combo of AMD's continued product-driven execution and incrementally positive PC/server market data points bodes well for AMD's print/guide as we see upside to consensus numbers and raise our estimates accordingly. AMD shares have taken a pause and traded roughly in-line with the bumpy SOXX since last earnings, we believe due largely to the later than expected (still pending) Xilinx merger close and broader factor rotation. That said, shares have still outperformed the SOXX by 15% over the last year. We expect once the deal closes and management can more formally articulate the joint AMD/Xilinx strategy, the investor base could be reinvigorated by both the organic AMD growth story, and the broader datacenter portfolio that will include AMD's CPU and GPU technologies with Xilinx's leading PLD/SERDES chiplets and customer ASICs,” Ramsay wrote in his note.

On the outlook front, the analyst expects “an aggressive, but achievable outlook for 2022 that demonstrates continued PC and server share gains (including enterprise in both), while still leaving room to raise numbers through the year as supply improves further.”

The raised price target reflects higher 2022 and 2023 revenue estimates by 2.5% and 2%, respectively. Cowen is still above the Street on revenue/Street estimates for 2022.

AMD stock price is down 2% today.

By Senad Karaahmetovic | [email protected]

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