Market Overview

Barclays On AMD: 'Turnaround Under Way, But Already Pricing In Some Success'

Share:

Advanced Micro Devices, Inc. (NASDAQ: AMD) has been the best performing semiconductor stock year-to-date. Citing execution as historically being “the key challenge” for AMD, Barclays’ Blayne Curtis recommended being on the sidelines until the company “shows better progress.” The analyst initiated coverage of Advanced Micro Devices with an Equal Weight rating and a price target of $7.

The company’s shares have surged 142 percent YTD, versus a 26 percent gain in the SOX. Positive sentiment has been driven by new product offerings and potential share gains, Curtis mentioned.

Transformation In Early Stages

Advanced Micro Devices does offer potential, given its renewed focus on the discrete GPU market, which is estimated to reach ~$6 billion in 2016, as well as the company’s commitment to delivering products consistently.

The analyst pointed out, however, that the company is in the early stages of its planned transformation and that it “still faces an uphill battle to recapture meaningful share and achieve sustained profitability.”

While the strategy proposed by the new management team seems appropriate and the company has taken steps in the right direction, execution has historically been the key challenge for Advanced Micro Devices. Curtis stated that the company needs to show better progress, particular with the Zen server offering, since this has the highest potential to impact estimates.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for AMD

DateFirmActionFromTo
Nov 2019MaintainsOutperform
Nov 2019MaintainsOutperform
Oct 2019UpgradesHoldBuy

View More Analyst Ratings for AMD
View the Latest Analyst Ratings

Posted-In: Barclays Blayne CurtisAnalyst Color Initiation Analyst Ratings

 

Related Articles (AMD)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
NEWCitiUpgrades
BKNGConsumer Edge ResearchInitiates Coverage On2,250.0
EXPEConsumer Edge ResearchInitiates Coverage On100.0
TRIPConsumer Edge ResearchInitiates Coverage On26.0
IAreteInitiates Coverage On39.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Odds Of A Rate Hike Rise To 64%, Bloomberg Says

Benzinga's Top Upgrades