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UPDATE: FBR Capital Markets Downgrades Advanced Micro Devices to Market Perform on Cash, Margin Concerns

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FBR Capital Markets reduced its rating on Advanced Micro Devices (NYSE: AMD) from Outperform to Market Perform and reduced its price target from $5 to $3.

FBR Capital Markets noted, "We are throwing in the towel on AMD and are downgrading shares to Market Perform. While we know PC sales are suffering from weak macro demand (including China and Europe), a complete absence of any back-to-school goodness, tablet/smartphone cannibalization, and a production/sales "air pocket" before the Win8 launch, we now have less confidence in go-forward cash burn given rapidly declining ASPs and management's new refusal to provide gross margin guidance. Thus, we worry about the magnitude of intended pricing cuts and gross margin impacts as AMD's cash bleed could intensify."

Advanced Micro Devices closed at $2.62 on Thursday.

Latest Ratings for AMD

DateFirmActionFromTo
Dec 2016Bank of AmericaUpgradesUnderperformBuy
Dec 2016Loop CapitalInitiates Coverage OnBuy
Nov 2016MKM PartnersMaintainsBuy

View More Analyst Ratings for AMD
View the Latest Analyst Ratings

Posted-In: FBR Capital MarketsAnalyst Color Downgrades Intraday Update Analyst Ratings

 

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