Advanced Micro Devices gets Hammered in the Pre-Market Amid FBR & Co. Downgrade

Early Friday morning FBR & Co. analyst, Christopher Rolland downgraded shares of Advanced Micro Devices AMD from Outperform to Market perform and cut his price target from $6 to $4.50. Amid the downgrade, shares of Advance Micro Devices are down as much as 18 percent in Fridays's Pre-market session. Speaking on the company's second quarter earnings release last evening, Rolland commented, "Most surprising to us was management's guidance for gaming console APU revenue to peak in the third quarter of 2014, perhaps demonstrating an "as good as it gets" scenario for 2014." Rolland says this guidance is odd considering console shipments were up "sharply" in the fourth quarter of 2013. Looking forward, Rolland suspects Advanced Micro Devices may supply the next-generation APU for the next-generation Nintendo 3DS. However, he sees this as adding only $0.04 EPS, which he noted is not enough to move the valuation needle.
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Posted In: Analyst ColorNewsDowngradesPrice TargetAnalyst RatingsChristopher RollandFBR & Co.
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