Advanced Micro color on qtr
AMD is indicated for a much higher open this morning, +22.5% premarket (last print $3.21), near 14-month highs
- Topeka Capital Mkts takes tgt on AMD to $3 from $2 and stays at Hold noting co reported 1Q16 revenue and EPS ahead of consensus and guided 2Q16 rev above consensus expectations driven by share gains across graphics and computing. The semi-custom segment remained seasonally impacted in 1Q16, but firm expects it to improve in 2Q16 as customer demand resumes its seasonal ramp. Firm is encouraged by newly announced IP deals and expect AMD to further monetize its technology. They are also encouraged by the prospect of operating profitability in 2H16 and positive free cash flow generation.
- Mizuho stays at Neutral, $3 tgt on AMD noting co reported 1Q16 Rev/EPS above consensus with better PC computing and guided JunQ up 15% q/q, well above consensus with semi-custom, gaming and VR ramps. AMD also announced a new x86 CPU and SoC licensing deal with THATIC in China. NT, stronger semi-custom with gaming, VR and licensing deals and an ATMP cash infusion position AMD well and should remove some balance sheet concerns.
- Craig Hallum upgraded AMD to Buy from Hold
- Exane BNP Paribas upgraded to Neutral from Underperform
- Jefferies took tgt to $4.50 from $3.50; Buy