Top Analyst Lifts Price Target on AMD
Advanced Micro Devices, Inc. (NASDAQ:AMD) officially launched its EPYC 7000 series, spanning entry-level to highperformance server CPUs, sending shares up nearly 6% in early trading Wednesday.
Canaccord’s top analyst Matt Ramsay attended the public launch and left impressed with the first set of systems based on the 14nm Zen CPU silicon – including record benchmark scores, the roadmap’s simplified lineup and uncompromised memory and I/O bandwidth configurations, and the foundation to extend seamlessly as AMD moves the roadmap to 7nm CPUs over the next couple years with guaranteed multi-generational socket compatibility.
Ramsay commented, “Even against what we believe will be a compelling Purley/Skylake launch from Intel’s server teams in July, we believe AMD has built the foundation to re-emerge as a solid competitor in the enterprise, cloud and storage tiers of the server market and to uniquely combine CPU and GPU technologies to add unique value to customers for deep learning and AI. Finally, while some investors remain skeptical, we believe sustained n-node execution across the PC, GPU and server roadmaps can deliver the much higher gross margin targets and potentially material upside to the $0.75 EPS target for 2020 outlined in the updated long-term financial model at AMD’s recent analyst day.”
As such, Ramsay reiterates a Buy rating on shares of Advanced Micro Devices, while raising the price target to $20.00 from $17.00, which implies an upside of 58% from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, 5-star analyst Matt Ramsay has a yearly average return of 27.3% and a 66% success rate. Ramsay has a 48.3% average return when recommending AMD, and is ranked #40 out of 4569 analysts.
Out of the 20 analysts polled by TipRanks (in the past 3 months), 10 rate AMD stock a Buy, 10 rate the stock a Hold and 3 recommend to Sell. With a downside potential of 10%, the stock’s consensus target price stands at $12.16.
Whole Foods Will Give Amazon the Scale and Density: Baird
In a research report issued Wednesday, Baird analyst Colin Sebastian reiterated an Outperform rating on shares of Amazon.com, Inc. (NASDAQ:AMZN) with a price target of $1,100, after the e-commerce giant announced plans to acquire Whole Foods, the high-end grocer. The $13.7 billion deal would give Amazon control of more than 400 stores, an extensive supply chain and a new source of consumer data.
Sebastian wrote, “Within grocery, WFM will help Amazon achieve the scale and density that otherwise would take years to build out. We also expect Amazon to connect Prime memberships (including Prime Now) and last-mile delivery, forging a dual-track Grocery strategy. Our survey of ~1,000 US households indicates that >50% of Whole Foods shoppers have Prime memberships, which bodes well for Prime-enabled grocery delivery adoption.”
“We believe Amazon’s purchase of Whole Foods makes a lot of sense, as it ostensibly provides the company with 460 grocery distribution centers, which can be utilized as local delivery hubs as well as in-store/drive-thru pickup for online orders,” the analyst added.
According to TipRanks.com, analyst Colin Sebastian has a yearly average return of 23.5% and a 78% success rate. Sebastian has a 39.6% average return when recommending AMZN, and is ranked #14 out of 4569 analysts.
The overwhelmingly majority of analyst say Amazon is a “Buy.” The average forecast is for the stock to hit $1,122.27 in the coming months.