Advanced Micro Devices Inc.'s (AMD) stock price target was raised Monday to $95 from $85 by Susquehanna analyst Christopher Rolland, who cited expectations that the chip maker will beat expectations, when it reports third-quarter results after Tuesday's close. The stock slipped 0.3% in premarket trading, while futures for the S&P 500 dropped 0.9%. Rolland reiterated the positive rating he's had on AMD since July. He said that while Wall Street expectations provide a "challenging bar" for AMD to clear, "we believe the next-gen gaming console ramp and continued strength in the PC market should be enough for AMD to clear it," Rolland wrote in a note to clients. The FactSet consensus is for earnings of 35 cents a share on revenue of $2.56 billion. Rolland said his research suggests AMD continues to gain market share in both desktops and laptops. Rolland said the set up for the stock is "favorable" ahead of the earnings report, especially given how it has underperformed the sector since the second-quarter report. The stock has rallied 78.7% year to date through Friday, while the PHLX Semiconductor Index has advanced 27.6% and the S&P 500 has gained 7.3%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 26, 2020 06:50 ET (10:50 GMT)
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