Latest news with #IngoWermann
Business Insider
05-08-2025
- Business
- Business Insider
Advanced Micro Devices (AMD) Is About to Report Q2 Earnings Tomorrow. Here Is What to Expect
Advanced Micro Devices (AMD) is set to report its Q2 2025 earnings on Tuesday, August 5, after the market closes. AMD stock has gained 42% in 2025 so far, driven by investors' growing confidence in the company's AI chip strategy. The stock rally picked up pace after the company unveiled its upcoming MI350 chip at its AI event in June. Positive sentiment was further boosted by reports that AMD intends to raise prices on its MI350 chip, indicating strong demand. Wall Street analysts expect the company to post revenues of $7.41 billion, up 27% from the year-ago quarter, according to data from the TipRanks Forecast page. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. However, earnings are expected to decrease by about 30% from the year-ago quarter to $0.48 per share. Notably, AMD has an encouraging earnings surprise history. The company missed earnings estimates just twice out of the previous nine quarters. Analysts' Views Remain Divided Ahead of Q2 Earnings Wall Street is divided on AMD's short-term outlook. While some analysts expect strong growth driven by AI demand, others remain cautious due to lofty expectations and execution risks. For instance, Erste Group's Stephan Lingnau upgraded AMD to Buy, citing strong demand for high-performance chips and rising margins. He expects profit growth to pick up in 2025 and sees 'good growth prospects' for the stock. Meanwhile, DZ Bank analyst Ingo Wermann downgraded the stock from Buy to Sell but increased the price target to $150.00 from $118 per share. Also, Bernstein Top analyst Stacy Rasgon prefers to remain on the sidelines. While he raised his price target on AMD to $140, he kept a neutral rating, pointing to high valuations and near-term risks like ' tariff pull-forwards.' Rasgon sees near-term upside from China AI sales and the MI350 launch but warned that investor expectations may already be 'elevated.' Options Traders Anticipate a Large Move Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting an 8.97% move in either direction. Is AMD Stock a Good Buy? Overall, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock based on 24 Buys, 10 Holds, and 1 Sell rating. The average AMD stock price target of $156.47 indicates a possible downside of 8.87% from current levels.
Business Insider
02-08-2025
- Business
- Business Insider
Watch Out! Analysts Have Recently Downgraded These Stocks
As an investor, it is prudent to keep track of stocks that have been downgraded by Wall Street, as these signal an unfavorable change in the company's outlook. Analysts usually downgrade a company's ratings when they perceive deteriorating fundamentals, a weaker competitive position, or a challenging macroeconomic environment. Importantly, analysts also share their reasons and insights behind these downgrades. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Common factors leading to downgrades include declining sales and earnings, regulatory headwinds, or high valuations compared to peers. A stock's price often reacts to analyst rating changes or adjustments in price targets. Investors can use these rating changes to gauge the risks involved and adjust their portfolio holdings accordingly. However, not every downgrade calls for an immediate sell. Instead, investors should conduct a closer review of these stocks and reassess their investment strategy. Here's a List of Downgraded Stocks: Advanced Micro Devices (AMD) – Ahead of AMD's Q2 results, DZ Bank analyst Ingo Wermann double-downgraded AMD stock from a 'Buy' to a 'Sell' rating, yet raised the price target from $118 to $150, implying 16.4% downside potential from current levels. While he has not provided specific reasons for the downgrade, his bearish stance could be due to factors such as competitive landscape and execution risk as well as AMD's position in the artificial intelligence (AI) market. Lam Research Corp. (LRCX) – Lam Research supplies innovative wafer fabrication equipment (WFE) and services. Summit Insights analyst Kinngai Chan downgraded LRCX stock to a 'Hold' rating from 'Buy,' despite the company exceeding expectations in its Q2FY25 results. Chan expects Lam Research to experience moderating WFE spend in 2026. United Parcel Service (UPS) – UPS is one of the world's largest package delivery and logistics companies. UPS reported mixed Q2 results, with sales beating estimates but earnings falling short. Moreover, the company suspended its full-year guidance due to continued tariff uncertainty. Following the news, Vertical Research analyst Jeff Kauffman downgraded UPS to a 'Hold' from a 'Buy' rating, while maintaining a price target of $103 (18.2% upside). American Tower Corporation (AMT) – American Tower is a real-estate investment trust (REIT) focused on wireless and broadcast communications infrastructure. HSBC analyst Ali Naqvi downgraded AMT stock to a 'Hold' from a 'Buy' rating, and also cut the price target from $245 to $235 (12.6% upside). Despite reporting strong Q2 results, Naqvi doesn't see much scope for share price appreciation, since the shares have already gained over 20% this year, especially considering AMT slightly lowered its U.S. growth forecast. Rio Tinto (RIO) – Rio Tinto engages in the mining and exploration of iron ore, aluminum, copper, and other minerals. Deutsche Bank analyst Liam Fitzpatrick downgraded RIO stock to a 'Hold' from a 'Buy' rating, citing iron ore risks after Rio reported its first half results. Although Rio remains the analyst's 'preferred iron ore major' and is 'delivering consistently,' Fitzpatrick sees downside risks to iron ore in the months ahead. Booking Holdings (BKNG) – Booking Holdings is an online travel and hotel reservation portal. Following the company's Q2 results, Wedbush analyst Scott Devitt downgraded BKNG to a 'Hold' from a 'Buy' rating. Devitt noted that Booking reported healthy Q2 results, but the guidance for Q3 was weaker than expected. Union Pacific Corporation (UNP) – Union Pacific Corp. is one of America's largest railroad companies. UNP announced its intent to acquire its smaller rival, Norfolk Southern (NSC), for $85 billion to create a mega rail company. Following the news, Citi analyst Ariel Rosa downgraded UNP stock to a 'Hold' from a 'Buy' rating, and also slashed the price target to $250 (11% upside) from $270. Rosa is excited about the idea of a transcontinental railroad, but expects strong opposition. The analyst thinks both stocks may stay flat as investors wait on regulatory approval and possible conditions. CyberArk Software (CYBR) – CyberArk is a software security and identity management solutions provider. Larger rival Palo Alto Networks (PANW) agreed to acquire CyberArk for $20 billion, aiming to launch the 'next chapter of cybersecurity' and tackle the AI threat. Following the news, several analysts downgraded CYBR stock from a 'Buy' rating to a 'Hold.' William Blair analyst Jonathan Ho noted that with the deal, the combined company is well positioned to address the growing identity threat surface with a unified platform. BTIG analyst Gray Powell stated that since CyberArk trades at only a 3% discount to its current $453 per share takeout price, a Hold rating is more appropriate. Meanwhile, Stifel Nicolaus analyst Adam Borg kept his price target unchanged at $444, implying 2% upside potential. Caesars Entertainment (CZR) – Caesars Entertainment is a premium casino-entertainment and hospitality company. CFRA analyst Zachary Warring downgraded CZR stock to a 'Sell' rating from a 'Hold' and also slashed the price target from $50 to $21, implying 24.7% upside potential. Warring was disappointed by Caesars' weak Regionals/Vegas business performance during the second quarter. Vyne Therapeutics (VYNE) – VYNE Therapeutics is a clinical-stage biopharmaceutical company focused on developing novel treatments for chronic inflammatory and immune-mediated conditions. The company announced that its Phase 2b trial for Repibresib gel failed to meet its primary endpoint and did not meet a key secondary endpoint, leading to the discontinuation of the ongoing extension phase of the trial. Following this news, several analysts downgraded VYNE stock from a 'Buy' rating to a 'Hold.' H.C. Wainwright analyst Joseph Pantginis noted that the Phase 2b result was ' a surprise to us ' and 'puts the company in a precarious position.' BTIG analyst Julian Harrison and LifeSci Capital analyst Rami Katkhuda also downgraded VYNE stock for similar reasons. NeoGenomics (NEO) – NeoGenomics is a specialized clinical laboratory company that focuses on cancer diagnostic testing services to support precision oncology. NeoGenomics missed Q2 expectations and also cut its fiscal 2025 revenue guidance. Following this news, William Blair analyst Andrew Brackmann downgraded NEO stock to a 'Hold' rating and stated that the significant reduction in FY25 guidance is a step toward rebuilding investor credibility, but he believes restoring confidence will take time and that shares are expected to struggle for a while. Similarly, BTIG analyst Mark Massaro downgraded NEO to a Hold rating and stated that investors are questioning management's credibility, which he believes is a fair concern. Norfolk Southern (NSC) – Union Pacific Corp. announced its intent to acquire Norfolk Southern for $85 billion to create a mega rail company. Following this news, J.P. Morgan analyst Brian Ossenbeck downgraded NSC stock from a 'Buy' rating to a 'Hold' but lifted the price target to $288 (from $282), implying 3.3% upside potential from current levels. To find out more about analyst ratings, follow the to keep track of daily analyst updates.
Business Insider
01-08-2025
- Business
- Business Insider
Downgrade Watchlist! These Are the Stocks Analysts Downgraded on 7/30/25
As an investor, it is prudent to keep track of stocks that have been downgraded by Wall Street, as these signal an unfavorable change in the company's outlook. Analysts usually downgrade a company's ratings when they perceive deteriorating fundamentals, a weaker competitive position, or a challenging macroeconomic environment. Importantly, analysts also share their reasons and insights behind these downgrades. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Common factors leading to downgrades include declining sales and earnings, regulatory headwinds, or high valuations compared to peers. A stock's price often reacts to analyst rating changes or adjustments in price targets. Investors can use these rating changes to gauge the risks involved and adjust their portfolio holdings accordingly. However, not every downgrade calls for an immediate sell. Instead, investors should conduct a closer review of these stocks and reassess their investment strategy. Here Are Today's Downgraded Stocks: Advanced Micro Devices (AMD) – Ahead of AMD's Q2 results, DZ Bank analyst Ingo Wermann double-downgraded AMD stock from a 'Buy' to a 'Sell' rating, yet raised the price target from $118 to $150, implying 16.4% downside potential from current levels. While he has not provided specific reasons for the downgrade, his bearish stance could be due to factors such as competitive landscape and execution risk as well as AMD's position in the artificial intelligence (AI) market. Lam Research Corp. (LRCX) – Lam Research supplies innovative wafer fabrication equipment (WFE) and services. Summit Insights analyst Kinngai Chan downgraded LRCX stock to a 'Hold' rating from 'Buy,' despite the company exceeding expectations in its Q2FY25 results. Chan expects Lam Research to experience moderating WFE spend in 2026. United Parcel Service (UPS) – UPS is one of the world's largest package delivery and logistics companies. UPS reported mixed Q2 results, with sales beating estimates but earnings falling short. Moreover, the company suspended its full-year guidance due to continued tariff uncertainty. Following the news, Vertical Research analyst Jeff Kauffman downgraded UPS to a 'Hold' from a 'Buy' rating, while maintaining a price target of $103 (18.2% upside). American Tower Corporation (AMT) – American Tower is a real-estate investment trust (REIT) focused on wireless and broadcast communications infrastructure. HSBC analyst Ali Naqvi downgraded AMT stock to a 'Hold' from a 'Buy' rating, and also cut the price target from $245 to $235 (12.6% upside). Despite reporting strong Q2 results, Naqvi doesn't see much scope for share price appreciation, since the shares have already gained over 20% this year, especially considering AMT slightly lowered its U.S. growth forecast. Rio Tinto (RIO) – Rio Tinto engages in the mining and exploration of iron ore, aluminum, copper, and other minerals. Deutsche Bank analyst Liam Fitzpatrick downgraded RIO stock to a 'Hold' from a 'Buy' rating, citing iron ore risks after Rio reported its first half results. Although Rio remains the analyst's 'preferred iron ore major' and is 'delivering consistently,' Fitzpatrick sees downside risks to iron ore in the months ahead. Booking Holdings (BKNG) – Booking Holdings is an online travel and hotel reservation portal. Following the company's Q2 results, Wedbush analyst Scott Devitt downgraded BKNG to a 'Hold' from a 'Buy' rating. Devitt noted that Booking reported healthy Q2 results, but the guidance for Q3 was weaker than expected. Union Pacific Corporation (UNP) – Union Pacific Corp. is one of America's largest railroad companies. UNP announced its intent to acquire its smaller rival, Norfolk Southern (NSC), for $85 billion to create a mega rail company. Following the news, Citi analyst Ariel Rosa downgraded UNP stock to a 'Hold' from a 'Buy' rating, and also slashed the price target to $250 (11% upside) from $270. Rosa is excited about the idea of a transcontinental railroad, but expects strong opposition. The analyst thinks both stocks may stay flat as investors wait on regulatory approval and possible conditions. CyberArk Software (CYBR) – CyberArk is a software security and identity management solutions provider. Larger rival Palo Alto Networks (PANW) agreed to acquire CyberArk for $20 billion, aiming to launch the 'next chapter of cybersecurity' and tackle the AI threat. Following the news, several analysts downgraded CYBR stock from a 'Buy' rating to a 'Hold.' William Blair analyst Jonathan Ho noted that with the deal, the combined company is well positioned to address the growing identity threat surface with a unified platform. BTIG analyst Gray Powell stated that since CyberArk trades at only a 3% discount to its current $453 per share takeout price, a Hold rating is more appropriate. Meanwhile, Stifel Nicolaus analyst Adam Borg kept his price target unchanged at $444, implying 2% upside potential. Caesars Entertainment (CZR) – Caesars Entertainment is a premium casino-entertainment and hospitality company. CFRA analyst Zachary Warring downgraded CZR stock to a 'Sell' rating from a 'Hold' and also slashed the price target from $50 to $21, implying 24.7% upside potential. Warring was disappointed by Caesars' weak Regionals/Vegas business performance during the second quarter. Vyne Therapeutics (VYNE) – VYNE Therapeutics is a clinical-stage biopharmaceutical company focused on developing novel treatments for chronic inflammatory and immune-mediated conditions. The company announced that its Phase 2b trial for Repibresib gel failed to meet its primary endpoint and did not meet a key secondary endpoint, leading to the discontinuation of the ongoing extension phase of the trial. Following this news, several analysts downgraded VYNE stock from a 'Buy' rating to a 'Hold.' H.C. Wainwright analyst Joseph Pantginis noted that the Phase 2b result was ' a surprise to us ' and 'puts the company in a precarious position.' BTIG analyst Julian Harrison and LifeSci Capital analyst Rami Katkhuda also downgraded VYNE stock for similar reasons. NeoGenomics (NEO) – NeoGenomics is a specialized clinical laboratory company that focuses on cancer diagnostic testing services to support precision oncology. NeoGenomics missed Q2 expectations and also cut its fiscal 2025 revenue guidance. Following this news, William Blair analyst Andrew Brackmann downgraded NEO stock to a 'Hold' rating and stated that the significant reduction in FY25 guidance is a step toward rebuilding investor credibility, but he believes restoring confidence will take time and that shares are expected to struggle for a while. Similarly, BTIG analyst Mark Massaro downgraded NEO to a Hold rating and stated that investors are questioning management's credibility, which he believes is a fair concern. Norfolk Southern (NSC) Brian Ossenbeck downgraded NSC stock from a 'Buy' rating to a 'Hold' but lifted the price target to $288 (from $282), implying 3.3% upside potential from current levels.
Yahoo
13-05-2025
- Business
- Yahoo
Bullish AMD Analyst Eyes $200 Price Target After Blowout Q1 Earnings
Advanced Micro Devices (AMD) market bulls are out in force following the company's confidence-inspiring Q1 2025 earnings report last week. The monster semiconductor company had a good quarter, with strong growth compared to last year, intelligent AI and data center initiatives, and strong performance from its core businesses. For investors seeking exposure in tech for relative value and strong near-term growth, AMD is a worthy consideration. Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. And so too with Wall Street. Following AMD's results, several analysts reiterated their Buy ratings, with one analyst, Ingo Wermann from DZ Bank, upgrading his stance from neutral to bullish. Wermann's price target on AMD stock is currently $118 per share, which is one of the Big Apple's more conservative estimates. Ultra-bulls like Hans Mosesmann from Rosenblatt Securities expect AMD to reach $200 within twelve months. AMD posted a fantastic 36% year-on-year increase in Q1 2025 revenues. The sharp boost has been emphatically attributed to the booming data center market and a significant rebound in client (PC) sales, thanks to their competitive new products like the Zen 5 Ryzen CPUs. These CPUs are flying off the shelves, considerably elevating AMD's presence in the PC market. But revenue growth isn't the only significant factor here. AMD also significantly improved its profitability by posting a 50% GAAP gross margin (up from 47% last year). According to the commentary in AMD's earnings call, this was due to an improved product mix focused on profitability, particularly data center chips. On a non-GAAP basis, gross margins reached a healthy 54%. Moreover, AMD's non-GAAP earnings per share increased by 55% year-over-year, reflecting excellent operational growth and cost discipline as the company expands. AMD has achieved a strong mix of more money coming in, along with better profits. CFO Jean Hu mentioned the big boost in earnings from expanding operations, and this financial strength provides a good base for the rest of FY2025. The U.S. economy is on course to deliver business-friendly conditions by 2026, with favorable policies in place to encourage growth. Big tax cuts and shrunken regulations are expected to empower businesses to invest more and expand with fewer restrictions. Companies will keep more of their earnings and have fewer regulatory issues, triggering massive investments in AI and cloud computing. A more favorable business environment for AMD enables customers to pay a premium for server upgrades with AMD's high-powered processors. At the same time, supply chains returning to the U.S. will benefit AMD by making its products more readily available and its revenues more secure in the long term. Though tariffs can cause short-term contractions, they also enable the gradual development of robust market security measures. In many respects, tax and deregulation tailwinds will offset any short-term hit from tariffs. In addition, I'm confident the U.S. can strike favorable trade deals with all its international peers, especially its allies. This will significantly reduce the overhang of tariffs on sentiment in the stock market, and we're already seeing this begin to play out. My current model indicates a price target of around $175 per share for AMD within 12 months. To support my estimate, I think AMD can achieve this lofty target given its solid revenue growth, rising profit margins, and favorable position in the market, particularly in profitable segments such as AI and data centers. Using conservative estimates, AMD should generate ~$37 billion in TTM revenue in the middle of calendar 2026, or about $5.80 in non-GAAP earnings per share. Using a reasonable price-to-earnings ratio of 30 (in light of AMD's growth and cyclical earnings expansion underway), substantiates my $175 price target. AMD has robust growth in the pipeline, which I believe the market hasn't adequately priced right now. Therefore, AMD staying rangebound and languishing in post-earnings anxiety (despite a great report) based on transitory macro themes could serve as a timely opportunity. Patient investors with a long-term view can gain exposure to a top-tier stock at a discount, expecting a stock surge in the coming months. No investment is risk-free, and AMD does have some pertinent issues. The most significant risks are regulations that restrict exports of high-end chips, particularly in selling to China. Due to these new export restrictions, AMD is already facing an $800 million charge in the upcoming quarter. AMD depends heavily on third-party vendors like TSMC (TSM), so supply chain troubles are always a risk factor. Moreover, uncertainty in the PC and gaming markets may cause variability in quarter-over-quarter figures, and intense competition from NVIDIA (NVDA) and Intel (INTC) is always present. Despite these dangers, AMD's strengths, solid product family, and alternative revenue streams substantially minimize these concerns. AMD has a consensus Moderate Buy rating on Wall Street based on 20 Buys, seven Holds, and zero Sell ratings over the past three months. The average AMD price target is $126.81, indicating almost 17% upside potential over the coming year. AMD's recent results and strategic initiatives support a positive outlook for the company. It is well-positioned to benefit from major trends in AI, cloud computing, and a recovering PC market. With continued innovation and expansion into higher-margin segments, AMD presents a compelling opportunity for investors seeking growth in the technology sector. Backed by a clear strategy and significant market potential, AMD is poised for further progress. The case for a $175 stock price is strengthening, making this an opportune time to consider an investment in AMD. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
