Analysts are weighing in today on chip maker Advanced Micro Devices, Inc. (NASDAQ:AMD), video-streaming company Netflix, Inc. (NASDAQ:NFLX), and social media giant Facebook Inc (NASDAQ:FB). Here’s a quick roundup of today’s brokerage notes on AMD, NFLX, FB.
Advanced Micro Devices, Inc.
FBR Capital analyst Christopher Rolland reiterated a Market Perform rating on shares of Advanced Micro Devices, with a price target of $2.50, after the company reported in-line fourth-quarter results but worse-than-expected 1Q16 guidance. AMD’s shares reacted to the news, dropping nearly 8% to $1.80 in early morning trading.
Rolland commented, “While the pattern implies a worse-than-seasonal drawdown for that business, management guided console revenue to grow year over year, implying a massive seasonal ramp in 2H16. We are somewhat confused by the optimism but acknowledge that the company may envision a coming price reduction for Xbox that could drive sales upside. EPS for 2016 were also affected by worse-than-expected opex guidance, offsetting some of the cuts disclosed last quarter. While AMD, a company with a history of execution issues, will have its work cut out for it in the back half of the year, there were some things to like including better-than-expected 2016 capex guidance and a flat FCF expectation. Additionally, much of the bad news may be considered better than feared by investors as the stock was down –36% from intraday highs just a few weeks ago.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Christopher Rolland has a yearly average return of 3.9% and a 51% success rate. Rolland has a -1.2% average return when recommending AMD, and is ranked #535 out of 3580 analysts.
Out of the 23 analysts polled by TipRanks, 5 rate AMD stock a Buy, 12 rate the stock a Hold and 6 recommend a Sell. With a return potential of 28.5%, the stock’s consensus target price stands at $2.51.
Jefferies analyst Brian Fitzgerald reiterated a Hold rating on shares of Netflix, while raising the price target to $120 (from $105), following solid but mixed fourth-quarter results (stronger than expected International Subs and slightly better than expected U.S. profitability offset weaker than expected U.S. Subs).
Fitzgerald stated, “Results were mixed. On the plus side, International net subscriber adds beat ests, underscoring the longer-term opportunity as Netflix expands into 130 new countries in 1Q (entire globe ex-China), now serving 450MM broadband households. But the US streaming business missed ests as management noted it is harder than ever to attract new subscribers given the high penetration levels (~45MM US streaming subs).”
The analyst concluded, “We raise our DCF-based PT to $120 from $105 as we increase our Int’l net add ests for ’16 and beyond. In the near term, our EPS ests are coming down due to the more aggressive global expansion timeline.”
According to TipRanks.com, analyst Brian Fitzgerald has a yearly average return of 8.7% and a 51.6% success rate. Fitzgerald has an -34.9% average return when recommending NFLX, and is ranked #412 out of 3580 analysts.
The overwhelmingly majority of experts say Netflix is a “buy.” The average forecast is for the stock to hit $124 in the coming months, according to TipRanks.
With Facebook preparing to release fourth-quarter financial results on Wednesday, January 27, William Blair analyst Ralph Schackart weighed in today with his predictions. The analyst rates Facebook an Outperform without suggesting a price target.
Schackart wrote, “From our conversations with an industry participant, we expect at least an in-line quarter on advertising revenue (the Street is at $5.2 billion) with a slight bias to the upside. Our conversations indicated that Facebook’s core newsfeed product continues to deliver strong results for advertisers. In addition, Nanigans, one of Facebook’s Strategic Preferred Marketing Developers (SPMD), reported strong click-through rates (CTRs), CPMs, and ROI in its quarterly report. Further, we believe video advertising spending on Facebook remained strong through the quarter, and Nanigans reported 41% quarter-over-quarter growth in video ad spending for its clients.”
The analyst concluded, “In our view, Facebook shares could trade back up to $110 in the near term assuming shares trade at 20 times 2016 EBITDA of $14.7 billion. While we are modeling 2016 EBITDA of $14.4 billion, we believe there could be upside from Instagram and video over the next 12 to 18 months.”
According to TipRanks.com, analyst Ralph Schackart has a yearly average return of 2.9% and a 50.0% success rate. Schackart has a 42.8% average return when recommending FB, and is ranked #951 out of 3580 analysts.