There’s a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on Spotify Technology SA (SPOT) and Advanced Micro Devices (AMD) with bullish sentiments.
Spotify Technology SA (SPOT)
In a report released yesterday, Mark Zgutowicz from Rosenblatt Securities reiterated a Buy rating on Spotify Technology SA, with a price target of $175. The company’s shares closed yesterday at $138.14.
Zgutowicz observed:
“We remain bullish on SPOT’s long-term global brand leverage potential, both in/outside music, however we acknowledge the stock may be “catalyst-less” near-term, weighed by a heavy gross margin thru perhaps ‘20E. We believe this dynamic argues for a long- awaited price increase in Spotify’s most loyal, Nordic sub base. We present a scenario analysis below (with visuals on page 2) reflecting near-term ARPU and gross margin stability resulting from a € 1 price increase in the region, beginning in 1Q20E. We expect the stock would react favorably to this announcement and subsequently break from a tired 6-month trading range. We reiterate our Buy rating and DCF-based $175 PT. Shares may soon be unstuck with some help from the Nordics.”
According to TipRanks.com, Zgutowicz is a 4-star analyst with an average return of 15.9% and a 61.3% success rate. Zgutowicz covers the Technology sector, focusing on stocks such as Trade Desk Inc, Wix.com Ltd, and Criteo SA.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Spotify Technology SA with a $168.19 average price target, a 21.8% upside from current levels. In a report issued on April 16, UBS also maintained a Buy rating on the stock with a $180 price target.
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Advanced Micro Devices (AMD)
In a report released today, Gus Richard from Northland Securities maintained a Buy rating on Advanced Micro Devices, with a price target of $28. The company’s shares closed yesterday at $27.69.
Richard said:
“We expect AMD to deliver upside relative to consensus of $0.06 on $1.26B and meet or exceed our estimate of $0.08 on $1.28B. We believe that AMD is benefitting from INTC capacity short fall in Q1 and will gain share in client computing moving throughout the year as INTC remains constrained during back-to-school and AMD has a broader 7nm product refresh in 2H than Intel’s 10nm refresh. Maintain OP and PT will adjust post earnings. Key Points Expect AMD to Exceed Estimates: We expect AMD report revenue in the range of $1.3B to $1.35B at high-end or slightly above guidance of $1.25B +/- $50M. We expect upside to be driven by better client CPU revenue as INTC remains capacity constrained and we believe AMD got increased output from GF in Q4 levels. At $1.35B in revenue we that AMD client CPU shipments increased 8% Q/Q.”
According to TipRanks.com, Richard is a top 100 analyst with an average return of 25.8% and a 73.2% success rate. Richard covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Akoustis Technologies, and Power Integrations.
Advanced Micro Devices has an analyst consensus of Moderate Buy, with a price target consensus of $29.42, which is a 6.2% upside from current levels. In a report issued on April 23, Jefferies also reiterated a Buy rating on the stock with a $34 price target.
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