Oppenheimer Assigns a Hold Rating on Advanced Micro Devices

By Jason Carr

Oppenheimer analyst Rick Schafer assigned a Hold rating to Advanced Micro Devices (NYSE: AMD) today. The company’s shares closed yesterday at $16.05, close to its 52-week high of $17.34.

Schafer noted:

“AMD reported beat/raise results Wednesday with 2Q18 sales/EPS of $1.76B/ $0.14, ahead of Street’s $1.72B/$0.12. 3Q guidance of $1.70B (vs consensus $1.76B) benefits from NB Ryzen and Epyc, offset by declines in crypto/blockchain. Management remains confident flagship 2Q, is well positioned to attain ~5% server CPU share exiting 2018. GM expanded 360bps Y/Y to 37%, boosting net income to its highest level in seven years. Ryzen mobile continues to drive overall PC growth for AMD. We view mining and near-term EPYC share targets as 2H18 risks…though the 2019 set-up for 7nm Epyc 2 looks incrementally better. FCF remains negative and EPS power limited as AMD plays catch-up with incumbents INTC/NVDA, keeping us sidelined here.”

According to TipRanks.com, Schafer is a 5-star analyst with an average return of 16.3% and a 68.8% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Skyworks Solutions, Texas Instruments, and Maxim Integrated.

Advanced Micro Devices has an analyst consensus of Moderate Buy, with a price target consensus of $17.09, representing a 6.5% upside. In a report issued on July 18, BMO Capital also maintained a Hold rating on the stock with a $12 price target.

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Based on Advanced Micro Devices’ latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $1.65 billion and net profit of $81 million. In comparison, last year the company earned revenue of $1.22 billion and had a GAAP net loss of $16 million.

Based on the recent corporate insider activity of 84 insiders, corporate insider sentiment is negative on the stock. Last month, Harry Wolin, the SVP, GC & Corporate Secretary of AMD sold 184,050 shares for a total of $2,626,394.

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Advanced Micro Devices, Inc. engages in the provision of semiconductor businesses. It operates through the Computing and Graphics; and Enterprise, Embedded and Semi-Custom segments. The Computing and Graphics segment includes desktop and notebook processors and chipsets, and discrete and integrated graphics processing units.