Citi Upgrades AMD To Neutral, Increased Price Target Implies 8.5% Upside

July 15, 2021 12:34 PM | 1 min read | Make a Comment

Citigroup analyst Christopher Danely upgraded Advanced Micro Devices Inc AMD to Neutral from Sell with a price target of $95, up from $17, implying an 8.5% upside.
Danely's channel checks suggested that AMD share gains were finally accelerating in the server market, especially at hyper-scale companies like Amazon.com Inc's AMZN, Amazon Web Services, and Alphabet Inc's GOOG GOOGL Google.
He expects the momentum to continue.
Danely also sees a possible contraction in Intel Corp's INTC gross margins to the '40s, akin to AMD's last product cycle.
He raised estimates on AMD and recommended a pair trade of overweight AMD and underweight Intel.
Price action: AMD shares traded lower by 1.94% at $87.32 on the last check Thursday.