Analysts weigh in on chip maker Advanced Micro Devices, Inc. (NASDAQ:AMD) and telecommunications firm Nokia Corp (ADR) (NYSE:NOK), offering compelling reasons for their ratings and summarizing expectations.
Advanced Micro Devices, Inc.
Canaccord analyst Matt Ramsay reiterated a Hold rating on shares of Advanced Micro Devices with a price target of $2.40, while lowering near-term financial estimates slightly given recent PC OEM data and supply chain discussions.
Ramsay noted, “With near-term PC market data still showing a significant Y/Y decline and growth stagnating in core gaming console products, we believe near-term financial results will continue to feel pressure and model total revenue down 13% Y/Y in 1H/16. Despite believing in the leadership under AMD’s CEO Lisa Su and a much improved FinFET product portfolio, we wait for tangible signs of multi-quarter business stability before becoming more constructive.”
“While our estimates remain slightly above consensus and we model AMD returning to Y/Y topline growth in both businesses in 2017, we lower our 2016/17 LPS estimates from $(0.23)/(0.05) to $(0.27)/(0.10) on slightly lower revenue and higher marketing expense estimates needed to launch the new FinFET portfolio. Given the tough road ahead of AMD for the next few quarters, we maintain our HOLD rating,” the analyst continued.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Matt Ramsay has a yearly average return of -6.6% and a 41% success rate. Ramsay has a -33% average return when recommending AMD, and is ranked #3586 out of 3863 analysts.
Out of the 9 analysts polled by TipRanks (in the past 3 months), 1 rate AMD stock a Buy, 5 rate the stock a Hold and 3 recommend a Sell. With a downside potential of 13%, the stock’s consensus target price stands at $2.44.
Nokia Corp (ADR)
While the market expects Nokia to have bad 1Q16 results on May 10, 2016, J.P. Morgan analyst Sandeep Deshpande remains positive, reiterating an Overweight rating on the stock, with a €7.00 price target.
Deshpande noted, “Nokia has no doubt indicated a weak 1Q16, and indication of this weak 1Q16 was at the FY15 results. This results announcement differed from past FY results because of the lack of specificity due to the ALU integration. Lack of guidance indeed often creates uncertainty, but we see no reason to believe a substantial miss to earnings (despite Juniper). Though 1Q16 will likely be soft on the sales line, 2H15 cost cuts instituted should continue to positively impact results. We raise our 1Q16E earnings to near consensus, but not in line with consensus as Tech sales, where we are below consensus, may actually meet consensus but due to patent sales.”
“With the stock weak in the last month, we believe that bearishness is considerable and stock should rally into the results, even if EBIT is marginally weaker than consensus,” the analyst concluded.
According to TipRanks.com, analyst Sandeep Deshpande has a yearly average return of 10% and a 44% success rate. Deshpande has a 12% average return when recommending NOK, and is ranked #868 out of 3863 analyss.
Out of the 18 analysts polled by TipRanks, 10 are bullish on Nokia’s stock, 7 are neutral, and 1 is bearish. With a return potential of 45%, the stock’s consensus target price stands at $8.77.