UBS Keeps 'Buy' on AMD (AMD), Citing Valuation Basis; Adjusts Estimates and Price Target
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Price: $514.39 +6.50%
Rating Summary:
53 Buy, 16 Hold, 2 Sell
Rating Trend: = Flat
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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UBS maintains a 'Buy' on AMD (NYSE: AMD) price target of $7.00 (from $10.50).
Analyst, Uche Orji, said, "June represents 50% of 2Q sales, and AMD indicated weakness began mid-June, a situation we believe was exacerbated by the impending ultrabook product cycle as consumers may delay purchases. Gross margin view is unchanged (implying resilient ASPs), and opex is 8% below original $605m guidance. We lower estimates and PT, maintain Buy on valuation."
Separately, Orji said that despite the server market doing better than PCs (for AMD), he expects momentum to slow for server share gains given modest exposure to mega-data centers and dependence on Dell (Nasdaq: DELL) and HP (NYSE: HPQ).
FY12 EPS estimate cut from $0.82 to $0.53 and FY13 from $1.10 to $0.69.
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 $5.62 yesterday.
Analyst, Uche Orji, said, "June represents 50% of 2Q sales, and AMD indicated weakness began mid-June, a situation we believe was exacerbated by the impending ultrabook product cycle as consumers may delay purchases. Gross margin view is unchanged (implying resilient ASPs), and opex is 8% below original $605m guidance. We lower estimates and PT, maintain Buy on valuation."
Separately, Orji said that despite the server market doing better than PCs (for AMD), he expects momentum to slow for server share gains given modest exposure to mega-data centers and dependence on Dell (Nasdaq: DELL) and HP (NYSE: HPQ).
FY12 EPS estimate cut from $0.82 to $0.53 and FY13 from $1.10 to $0.69.
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 $5.62 yesterday.
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