UPDATE: Imperial Capital Initiates Coverage On Advanced Micro Devices

In a note dated June 9, Imperial analyst Ashok Kumar initiated coverage on Advanced Micro Devices AMD with an Outperform rating and set a $5 price target.

Kumar was pleased with Advanced's first quarter results in which revenue and and EPS came in above estimates. Moreover, he noted that the company has issued second quarter revenue guidance above previous street estimates.

Looking forward, Kumar noted that the company is looking to transition from a PC pure-play to generating as much as half of its revenues from non-traditional PC markets by the end of 2015.

Kumar concluded, "We are optimistic on the fundamentals of the company and the ability of the new business model to generate more consistent margins and cash flows."

Shares of Advanced are trading up almost four percent early in Tuesday's session.