BETA
This is a BETA experience. You may opt-out by clicking here

More From Forbes

Edit Story

AMD: Jefferies Ups Rating To Buy; Sees Big Upside

This article is more than 10 years old.

Jefferies semiconductor analyst Mark Lipacis early Thursday raised his rating on Advanced Micro Devices to Buy from Hold, lifting his target to $10.50 from $7. The stock closed Wednesday at $7.76.

"AMD offers one of the best risk/reward ratios in semis," he writes in a research note. "On the risk-side, AMD is trading near its '08 enterprise value/sales ratio, when its interest coverage broke 1.0 and net debt was ~$4 billion. On the reward side, AMD's APU delivers a unique MPU + high- end graphics product to the low end and mainstream mobile markets, driving share gains in both segments. We think share gains continue and improving manufacturing yields could translate to upside surprises."

For 2012, Lipacis now sees profits of 68 cents a share, up from 56 cents; for 2013 he goes to $1.03 a share, from 77 cents.