Nomura Securities Maintains a 'Neutral' on AMD (AMD); Acquires SeaMicro to Boost Data-Center Play
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Price: $514.39 +6.50%
Rating Summary:
53 Buy, 16 Hold, 2 Sell
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
53 Buy, 16 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on AMD (NYSE: AMD) price target of $5.00.
Analyst, Romit Shah, said, "AMD announced that it has agreed to acquire privately-held SeaMicro for $334mn. We view this acquisition as incrementally positive for AMD. SeaMicro supplies low-power server technology targeting the cloud data center market. IDC estimates this segment will consume about 2mn units of CPUs in 2012, growing at a 15% CAGR through 2015. The acquisition does not change AMD’s financial guidance for 2012. The company expects the transaction to be accretive to earnings after 2012. Post closing, we expect AMD’s cash balance to drop from $1.8bn to $1.5bn, with $2.0bn of debt outstanding. The next debt principal payment of $485mn is due in August 2012."
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 $7.35 yesterday.
Analyst, Romit Shah, said, "AMD announced that it has agreed to acquire privately-held SeaMicro for $334mn. We view this acquisition as incrementally positive for AMD. SeaMicro supplies low-power server technology targeting the cloud data center market. IDC estimates this segment will consume about 2mn units of CPUs in 2012, growing at a 15% CAGR through 2015. The acquisition does not change AMD’s financial guidance for 2012. The company expects the transaction to be accretive to earnings after 2012. Post closing, we expect AMD’s cash balance to drop from $1.8bn to $1.5bn, with $2.0bn of debt outstanding. The next debt principal payment of $485mn is due in August 2012."
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 $7.35 yesterday.
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