Jefferies Bullish on Advanced Micro Devices, Inc. (AMD) and Oracle Corporation (ORCL); Here’s Why

Jefferies analysts are out today with favorable notes on chip maker Advanced Micro Devices, Inc. (NASDAQ:AMD) and software giant Oracle Corporation (NYSE:ORCL). While one analyst sees brighter future for AMD on the back of increased visibility into 2H16, the other remains positive on Oracle ahead of its upcoming earnings release. Let’s take a closer look:

Advanced Micro Devices, Inc.

Jefferies analyst Mark Lipacis reiterated a Buy rating on shares of Advanced Micro Devices and increased the price target to $5.50 (from $4.50), after the company announced last week its first 14nm FinFET GPU based on the Polaris architecture. This is the first new product announcement since 2011 when its 28nm products were first released.

Lipacis noted, “We raise our price target based on what we believe is good execution on its 14nm Polaris GPU, and pending ramps of 3 new semi-custom products. Last week AMD announced that its first Polaris GPU (RX 480) would ship late June and deliver a high end GPU to the value market. Recent shipments of VR HMDs from Oculus and HTC suggest positive demand for Sony VR systems, which we believe will use AMD GPUs.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Lipacis has a yearly average return of 16.3% and a 76% success rate. Lipacis has a 11% average return when recommending AMD, and is ranked #21 out of 3979 analysts.

Out of the 20 analysts polled by TipRanks, 5 rate AMD stock a Buy, 10 rate the stock a Hold and 5 recommend a Sell. With a downside potential of 28%, the stock’s consensus target price stands at $3.16.

Oracle Corporation

With Oracle preparing to release earnings this week, Jefferies analyst John Difucci weighed in today with his prediction. The analyst expects a decent F4Q, though large deal slippage may threaten ARR numbers.

Difucci wrote, “We believe ORCL is set up well, as slipped large deals were not lost and some will likely close in the near future. We should also see a modest benefit to ARR in F17 from two acquisitions announced this Q that would help optics relative to current estimates. We expect sales incentives to favor Cloud sales, but with less impact on margin. We do not expect the recent whistle blower issue to result in a negative outcome for ORCL. Finally, we continue to believe that the imminent release of 12c R2 will represent an important multiyear product cycle, albeit on a ramped progression.” Overall, “We believe the Q will indicate further progress in ORCL’s attempt to provide customers with choice of on prem and Cloud solutions.”

Difucci reiterated a Buy rating on shares of Oracle with a price target of $50, which implies an upside of 29% from current levels.

According to, analyst John Difucci has a yearly average return of 5.8% and a 57% success rate. Difucci has a 4.8% average return when recommending ORCL, and is ranked #540 out of 3979 analysts.



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