Wedbush Cuts AMD (AMD) to Neutral Amid 'Very Disappointing' Outlook

July 20, 2012 7:43 AM EDT
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Wedbush downgraded AMD (NYSE: AMD) from Outperform to Neutral Friday morning following the company's Q2 report on Thursday afternoon. The firm reduced its price target on the stock from $7 to $5.

The firm called the company's sales outlook "very disappointing" and said its investment thesis on AMD is now breaking down. "Putting aside the macro
challenges that the entire semiconductor group is facing, we believe AMD has some considerable company-specific headwinds including (1) notebook APU market share losses, (2) weak desktop APU channel demand, (3) inventory build-up, and (4) slower-than-expected uptake of Bulldozer processors in the mainstream IT," according to Wedbush.

The firm said it is waiting for "signs of a resumption of APU share gains, inventory work-down, and the adoption of Bulldozer in the mainstream IT market..."

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

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