BofA/Merrill Lynch Downgrades AMD (AMD) to Underperform, $4 PT

BofA/Merrill Lynch downgraded AMD (NYSE: AMD) from Neutral to Underperform with a price target of $4.00 (from $4.50).

Analyst Vivek Arya said, "While management has done a good job of strengthening the balance sheet and winning critical business with major console customers, we believe the legacy PC/graphics market continues to be a material headwind."

The analyst notes AMD’s PC sales declined 20% YoY (vs. Intel’s +6%) due to its overexposure to weak consumer PC and negligible enterprise exposure.

The firm cut FY 2014 EPS from $0.19 to $0.08, FY 2015 EPS from $0.20 to $0.06 and FY 2016 EPS from $0.19 to $0.06.

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 $4.57 yesterday.

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