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Nomura Securities Reiterates a 'Buy' on AMD (AMD); Inflection Point in Q3

May 16, 2011 9:29 AM EDT
AMD Hot Sheet
Rating Summary:
    11 Buy, 7 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Nomura Securities reiterates a 'Buy' on AMD (NYSE: AMD).

Nomura analyst, Romit Shah, says, "We believe many investors are on the fence on AMD, seeing earnings power of $1.00+ but at the same time cautious on PC demand and skeptical of share gains. Although we share these concerns, we believe consensus is under-estimating the impact of mainstream notebook offering Llano on ASPs and gross margin. We see an inflection point in Q3, and AMD overall generating as much as $0.80 in 2011 and $1.10 in 2012. Valuation at 1.0x EV/sales is attractive in our view relative to a trough of 0.7x and Intel (Nasdaq: INTC) and Nvidia (Nasdaq: NVDA) at 2.5x."

For more ratings news on AMD click here and for the rating history of AMD click here.

Shares of AMD closed at $8.90 yesterday, with a 52 week range of $5.53-$9.78.


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