Advanced Micro Devices climbed more than 2% intraday after Canaccord Genuity said in a research note it remains confident in the company’s “positive thesis” and the new management team as well as product roadmaps.
Modest growth assumptions drive the company’s estimates materially above consensus as much skepticism still remains, according to analysts Matthew Ramsay and Logan Bender. “We believe risk/reward is still tilted toward the upside and that our long-term bullish target of $1.00+ in EPS (or higher) remains attainable by 2020.”
Canaccord reiterated their buy rating for the stock with a $17 price target before AMD’s analyst day, saying the company’s turnaround is “on track despite a rocky Q1 call”. AMD’s lower gaming console sales led to an in-line print and business mix, and a surprising accounting change led to disappointing gross margin outlook and rattled investor confidence, the research note added.