UPDATE: Canaccord Genuity Downgrades Advanced Micro Devices to Hold, Lowers PT

In a report published Friday, Canaccord Genuity downgraded its rating on Advanced Micro Devices (NYSE: AMD) from Buy to Hold, and lowered its price target from $7.00 to $5.00.

Canaccord Genuity noted, “We are downgrading shares of AMD to HOLD from Buy following last night's report during which AMD detailed slowing momentum for several product lines. While valuation appears attractive on a price-to-sales basis (0.6x), we are concerned that prolonged slow demand for PCs on tablet cannibalization may lead to sustained aggressive pricing from Intel and negatively impact AMD's gross margins and market share. We are lowering estimates and reducing our price target to $5.”

Advanced Micro Devices closed on Thursday at $4.86.

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