4 big analyst picks: AMD called a 'Top Pick' at Wolfe; Cisco upped at JPMorgan
Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: initiation at AMD, upgrades at Cisco, bluebird bio, and Helmerich & Payne.
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AMD started with Outperform rating at Wolfe
Late Wednesday, Wolfe Research initiated coverage on Advanced Micro Devices (NASDAQ:AMD) with an Outperform rating and a price target of $150.00 and added the stock to the Wolfe Alpha List as its top pick.
The firm’s bullish thesis on AMD is due to several key factors.
First, the normalization of inventory, which is expected to support growth in H2/23 following excessive inventory levels in both client and data center segments.
Second, the firm anticipates that AMD will continue to gain market share against Intel (NASDAQ:INTC), particularly in the data center segment, driven by the introduction of the Genoa and Bergamo CPUs.
Lastly, there is a potential contribution from new markets in 2024, such as telco and the MI300 for AI. Wolfe estimates that these markets will represent only a low single-digit percentage of revenue growth in 2024, but believes there is potential for significant upside.
Cisco gains on JPMorgan upgrade
Cisco Systems (NASDAQ:CSCO) shares rose more than 2% Wednesday after JPMorgan upgraded the company to Overweight from Neutral and raised its price target to $62.00 from $55.00, as reported in real time on InvestingPro.
The firm highlighted limited downside for enterprise spending and a cheap valuation. They expect the magnitude of order moderation to be limited moving forward, following a decline in order trends over several quarters.
We expect the macro to continue to drive spending sluggishness from customers, but at the same time we expect demand/orders for Networking Equipment including Wi-fi, Campus Switching, and Datacenter switching to have limited further deterioration.
JPMorgan also called Cisco's valuation "inexpensive" with a forward price-to-earnings ratio of 12.5x.
2 more upgrades
bluebird bio (NASDAQ:BLUE) shares surged more than 16% yesterday after BofA Securities upgraded the company to Buy from Neutral and raised its price target to $10.00 from $6.00, noting that the company’s sickle cell disease (SCD) gene therapy product, lovo-cel, is underappreciated.
Helmerich and Payne (NYSE:HP) shares gained more than 3% yesterday after Benchmark upgraded the company to Buy from Hold.
The company is set to report its Q3/23 earnings on July 27. Street estimates stand at $0.91 for EPS and $707.83 million for revenues.
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