Ascendiant Capital Downgrades AMD (AMD) to Hold

Ascendiant Capital downgraded AMD (NASDAQ: AMD) from Buy to Hold, saying PC weakness to large to offset and margin leverage is likely limted.

Analyst Cody Acree commented, "Following Intel’s negative pre-announcement, we believe the Street was largely prepared for AMD to echo a similar cautious view of the global PC environment, as the market returned to secular decline and channel inventories contracted ahead of this summer’s Windows 10 launch. While this scenario was likely already reflected in AMD’s stock price, we believe computing and graphics share loss, combined with game console revenue decline and a lack of server traction is likely to keep AMD’s shares range bound, at best, until growth drivers become more identifiable."

He added, "With the firm still largely tied to the declining PC market and losses likely to persist until at least the second half of next year, we’re reducing our rating from Buy to Hold and removing our target price."

For an analyst ratings summary and ratings history on AMD click here. For more ratings news on AMD click here.

Shares of AMD closed at $2.87 yesterday.

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