Nomura Securities Maintains a 'Neutral' on AMD (AMD); Paying for Flexibility at 28nm

Nomura Securities maintains a 'Neutral' on AMD (NYSE: AMD) price target of $5.00.

Analyst, Romit Shah, said, "AMD’s new agreement with Global Foundries is positive in short-run as they will have more competitive products in the tablet and ultra-thin form factors. That said, it is coming at a steep price and does not include mainstream notebook APUs, which is a big deal...The announcement would also suggest GF’s 28nm progress is not up to expectations and that would imply that AMD could be exposed to similar manufacturing issues that we saw at 32nm...Our estimates are unchanged at $0.60 in 2012 and $0.80 in 2013."

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 $7.46 yesterday.

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