Market Overview

UPDATE: Macquarie Downgrades Advanced Micro Devices to Neutral on Valuation

Share:
Related AMD
Morgan Stanley Stays Bearish On Advanced Micro Devices, Says Market Is Overrating JV
No Follow Through Rally In Advanced Micro Devices
AMD Closes Nantong Fujitsu Joint Venture, Now Is The Time To Buy (Seeking Alpha)

Early Thursday morning, Macquarie analyst Shawn Webster downgraded Advanced Micro Devices (NYSE: AMD) from Outperform to Neutral and maintained the $3.30 price target.

The report stated, "AMD has confirmed it will supply chips for the Playstation 4 and X-Box 720. While we believe it will be margin percent dilutive, we still estimate it will have significant earnings power, which appears to be unappreciated by the Street. If we subtract our game console chip forecast from Consensus AMD revenue forecasts, it implies the Street is expecting AMD's core business to be flat in Q3 and decline 5% QoQ in Q4—which we think is too bearish. We model sequential growth of up 16% QoQ for each of Q3 and Q4 at AMD versus the Consensus forecast of up 6-8% QoQ."

Following the rating change, shares have fallen 0.93 percent to $3.22.

Latest Ratings for AMD

DateFirmActionFromTo
Apr 2016MKM PartnersUpgradesNeutralBuy
Apr 2016Exane BNP ParibasUpgradesUnderperformNeutral
Apr 2016Morgan StanleyMaintainsUnderweight

View More Analyst Ratings for AMD
View the Latest Analyst Ratings

Posted-In: MacquarieAnalyst Color News Downgrades Analyst Ratings

 

Related Articles (AMD)

View Comments and Join the Discussion!