This Wall Street Firm Just Placed a $725 Price Target on AMD Stock. Here's Why It's Wrong.
The chipmaker's stock has gotten way too overheated.
Overview
It is the job of Wall Street analysts to rate stocks and set price targets for them -- figures that convey the direction they believe those stocks will take over the next year or so. While these are just predictions based on earnings forecasts, many investors put faith in these price targets when considering which stocks to buy. However, in my view, one recent analyst call on a widely followed chipmaker may have been a bit overzealous.
On Tuesday, KeyBanc raised its price target on AMD (NASDAQ: AMD) to $725 per share. That's after a huge 140% rally this year that has lifted the stock to around $510.
Image source: The Motley Fool.
Details
Source
Originally published at www.fool.com.
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