UPDATE: Bank of America Upgrades Advanced Micro Devices to Buy, Raises PT on Exclusive Game Console Wins

In a report published Thursday, Bank of America analyst Vivek Arya upgraded the rating on Advanced Micro Devices AMD from Underperform to Buy, and raised the price target from $2.50 to $6.00. In the report, Bank of America noted, “Exclusive wins in processor chips for next-gen Sony PS4 and Microsoft Xbox One game consoles expected in Q4 can transform AMD into a profitable, diversified company with a multi-year recurring revenue stream, away from its inconsistent past under Intel's shadow. We raise est., upgrade AMD to Buy from Underperform, while noting outstanding risks in PC/server market share and console profitability. Our $6 price target (prev. $2.50) is based on 1.0x 2014 EV/S, below AMD's 10 year median of 1.3x and semis at 2.2x, to reflect the risks.” Advanced Micro Devices closed on Wednesday at $3.98.