Market Overview

UPDATE: Goldman Sachs Downgrades Advanced Micro Devices to Sell on Disappointing Results in the PC Sector

Share:
Related AMD
AMD Had A Huge Thursday...But Should You Buy In?
Dan Nathan Sees Unusual Options Activity In Advanced Micro Devices
AMD's Carrizo: What's The Fuss About (Seeking Alpha)

In a report published Wednesday, Goldman Sachs analyst James Covello downgraded Advanced Micro Devices (NYSE: AMD) from Neutral to Sell with a new price target of $2.50.

In the report, Covello stated, "The gaming opportunity for AMD is real and indeed we believe published consensus estimates likely need to increase to incorporate gaming. However, even incorporating the expected gaming revenue and earnings, the stock is trading at 22X our new 2014 CY EPS estimate as the gaming opportunity only partially offsets the continued secular challenges in the company's core PC business (we estimate that the PC business will generate 45% of the company's 2013 revenue). We therefore believe this recent move in the stock is just the latest in a long history of unsustainable rallies, and we are downgrading the stock to Sell. We believe the current multiple is unjustified for any company with such significant exposure to the secularly declining PC market."

AMD is currently trading at $3.84, down 14.86 since market open.

Latest Ratings for AMD

DateFirmActionFromTo
Feb 2015BNP ParibasInitiates Coverage onUnderperform
Jan 2015Deutsche BankMaintainsHold
Jan 2015NomuraMaintainsNeutral

View More Analyst Ratings for AMD
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Downgrades Analyst Ratings

 

Related Articles (AMD)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Our Experts vs. S&P 500Powered by Benzinga
Marketfy Products Return S&P 500
Morning Profit Maker 42.72% 6.69%
The Option Prophet 91.14% 6.69%
SecretCaps 26.55% 6.69%
Short-Term Trend Trading 11.89% 6.69%
View the highest rated products→