Bank of America (NYSE:BAC) analyst Vivek Arya has reiterated a Buy rating and a Top Compute Pick designation on AMD (AMD) stock as he sees an “idiosyncratic growth at compelling valuation.”
Moreover, the analyst sees multiple catalysts ahead that could push AMD stock price higher, such as Computex tradeshow keynote (May 23) and Analyst Day (June 09).
“In our view, AMD is uniquely in the early stages of share gains in a $135bn+ addressable market across some of the most attractive end-markets in semis across cloud, enterprise, gaming and embedded/IoT. AMD’s idiosyncratic combination of share gains, consistent management roadmap execution & Xilinx/Pensando synergies could drive 15-20% sales, 20-25% pf-EPS and EPS power of $8+ by CY24/25E, on our estimates,” Arya said in a client note.
The analyst claims the market is underestimating the growth and margin profile of AMD.
Arya also sees a solid balance sheet and compelling valuation with more than 70% upside potential bearing in mind his $160.00 per share price target on AMD stock.
AMD stock price closed at $93.50 on Friday.
By Senad Karaahmetovic