Wedbush Downgrades AMD (AMD) to Neutral; CEO Change Seems Rushed

Wedbush downgraded AMD (NYSE: AMD) from Outperform to Neutral with a price target of $3.00 (from $6.00). Analyst Betsy Van Hees thinks the timing of an announcement about a CEO change seems rushed.

"AMD announced Wednesday AMC that President and CEO Rory Read has stepped down and Dr. Lisa Su has been appointed to succeed him, effective immediately. While we absolutely believe Dr. Su is the right person to lead AMD and view her appointment as a significant positive for AMD, the timing of her appointment seems rushed since AMD will report Q3 earnings next Thursday (Oct. 16 at 5:30pm ET; ir.amd.com) and both Dr. Su and Mr. Read are still negotiating their respective compensation packages," said Van Hees.

"We are worried this is a sign that AMD’s turnaround may be taking longer than anticipated and that the weakness in consumer PC may cause Q4 guide to fall short of expectations. While we applaud the promotion of Dr. Su and Mr. Read for his considerable contributions as CEO, given the challenges in AMD’s primary end markets, and seeming unplanned timing of her promotion, we think the prudent place to be at this time is on the sidelines," she added.

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 $3.28 yesterday.

You May Also Be Interested In

• JPMorgan Downgrades Monster Beverage (MNST) to Neutral, 'Cost Pressures and Weaker Low-end Consumer'
• Honeywell (HON) Tops Q1 EPS by 8c, Beats on Revenue; Offers FY Guidance
• Tesla (TSLA) PT Raised to $136 at Deutsche Bank