Deutsche Bank boosts AMD target, but says 'goodness' fully priced in - InvestingChannel

Deutsche Bank boosts AMD target, but says ‘goodness’ fully priced in

Deutsche Bank analyst Ross Seymore raised his price target for AMD (AMD) to $23 from $14 after hosting the company’s CFO Devinder Kumar at his firm’s 2018 Tech Conference. The chipmaker closed yesterday up 7%, or $2.11, to $32.21. The analyst found Kumar’s comments to be positive, noting the company reiterated its product-specific growth drivers and share gain plans within the server, graphics, and PC markets. Seymore continues to be impressed by AMD’s execution with the company “capitalizing not only on its strong new product traction but also on competitor missteps.” However, even with his raised 2020 estimates, the analyst believes “the goodness at AMD is already fully reflected in its share price.” The stock’s current valuation is elevated at 34 times consensus 2020 earnings estimates, Seymore tells investors in a research note. Further, he believes upside in earnings to the most bullish estimates likely ignores the potential for competitive responses from Intel (INTC) and Nvidia (NVDA). Seymore keeps a Hold rating on AMD.

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