UPDATE - Nomura Securities Downgrades AMD (AMD) to Neutral; Revenues and Profits Unlikely to Persist

UPDATE - Nomura Securities downgrades AMD (NYSE: AMD) from Buy to Neutral. PT lowered from $12 to $7.

Nomura analyst, Romit Shah, said, "We believe share gains and a richer product mix that are sustaining revenue and profits in the current quarter are unlikely to persist against the backdrop of weak consumer demand. Valuation looks attractive at 0.8x enterprise value/sales but we believe the multiple will remain low until the market sees how margins and the balance sheet hold up in a downturn. Our 2011E EPS goes from $0.65 to $0.60 and 2012E goes from $1.00 to $0.65."

To see more ratings changes on AMD, Click Here

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