MKM Partners Remains Bullish on Advanced Micro Devices (AMD) Following Strong 2Q
MKM Partners reiterated a Buy rating and $6.30 price target on Advanced Micro Devices (NASDAQ: AMD) following the company's 2Q earnings report. AMD reported a $0.04 EPS beat. Revenue was also strong in the quarter, due primarily to semi-custom game consoles and GPUs offsetting a weakness in desktops.
Analyst Ian Ing commented, "AMD reported a $0.04 EPS beat on strong revenue, and raised guidance well above consensus. Revenue upside was due to semi-custom game consoles and GPUs more than offsetting desktop weakness. Unless APU shipments for new PC systems surprise positively, 2016 upside potential is limited due to looming 4Q game console seasonality following this year's build pull-ins. However, investors are focused on the 2017 improvement story which is very much intact with Zen server CPUs on track for 1H17 volume shipments. We maintain our Buy rating and $6.30 price target (which would result in a 1.5x EV/NTM Sales ratio)."
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Shares of AMD closed at $5.22 yesterday.