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© REUTERS Less Than Two Weeks After Cutting PT by 25%, Piper Sandler Upgrades AMD (AMD) to Overweight and Hikes PT by Over 40%
Piper Sandler analyst Harsh Kumar upgraded shares of AMD (NASDAQ:AMD) to Overweight from Neutral with a $140.00 per share price target, up from the prior $98.00.
His call comes less than two weeks after Kumar lowered the PT on AMD to $98.00 (from $130.00) while maintaining a Neutral rating. The analyst is more constructive on AMD shares following a major pullback with AMD stock down over 40% from the record highs set in November last year.
In addition to attractive valuation, Kumar also sees strong core business fundamentals.
“The company’s core businesses are running really well and continue to benefit from secular trends. Within PCs, we see continued share gains in the broader PC market, along with very strong traction in the commercial market. In servers, we see 1) the one-year upgrade cadence of new processor introductions, 2) further traction at hyperscalers, and 3) cloud and enterprise tailwinds as key drivers to continued share gains. Finally, it also appears graphics cards continue to gain traction in both the consumer and data center markets,” Kumar said in a client note.
The higher price target reflects the raised multiple (~23x previously) on the back of the “higher conviction in business fundamentals.”
AMD stock is up 3.5% in pre-market Tuesday.
By Senad Karaahmetovic
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