By Sam Boughedda
Piper Sandler raised its price target on Advanced Micro Devices (NASDAQ:AMD) to $110 from $90 per share in a note Monday, maintaining an Overweight rating on the stock.
In a short note explaining the decision, Piper Sandler analysts said the new price target reflects the firm's new multiple of ~38x (previously ~31x).
"At a market price of $92.47, AMD trades at 26x our calendar 2023 EPS estimate of $2.89. AMD trades at a discount compared to its peer group, which trades at ~65x. Our new $110 price target is based on a ~38x P/E (previously 31x) of our calendar 2023 EPS estimate," they explained.
They added that Piper Sandler's higher multiple reflects elevated peer multiples.
AMD shares are up more than 1% so far in Monday's session, adding to its over 40% gain year-to-date. However, the stock is still down more than 9% in the last 12 months.