UPDATE: FBR Raises PT to $10 on Advanced Micro Devices

A report from FBR reiterates its Outperform rating and raises its price target from $8.50 to $10 on Advanced Micro Devices (NYSE: AMD).

The report states, “Stepping back, we like shares of AMD below $7 and think the stock trades very inexpensively on various valuation metrics, and with intensely negative investor sentiment. We see possible upside from share gains in client and server, and from mix and margin benefits as Llano/Trinity make up a greater portion of shipments. While difficult to assess, three points of APU share gains seem possible, adding $900M in annual revenues and $0.40 of EPS versus our model."

AMD closed yesterday at $5.54.