UPDATE: Benchmark Starts AMD (AMD) at Hold

(Updated - August 1, 2019 6:50 AM EDT)

(updated to add analyst comment)

Benchmark analyst Ruben Roy initiates coverage on AMD (NASDAQ: AMD) with a Hold rating.

The analyst comments "We expect AMD to continue to benefit from a robust product cycle which includes new generation PC, server and graphics processors. While we believe that AMD's momentum is likelyto remain strong in the near-term as new products continue to ramp over the next few months, we think that the current valuation reflects the Company's execution. AMD shares are trading at 29.7x the consensus 2020 EPS estimate of $1.03 and, on an enterprisevalue basis, 4.0x the consensus 2020 sales estimate which is close to AMD's historical peak EV/Sales multiple of 4.7x. On a P/E basis, AMD shares are trading at a significant premium to the semiconductor peer group average multiple of 21.7x. Intel (INTC Hold)and Nvidia (NVDA Not Rated), AMD's closet peers, are trading at 11.3x and 23.6x 2020 consensus EPS estimates, respectively."

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 $30.74 yesterday.

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