Credit Suisse analyst J. Pitzer reiterated an Underperform rating while cutting his price target on AMD (NASDAQ: AMD) to $2.00 (from $3.00) following Q4 results which missed the Street and guidance that was below the consensus.

Pitzer said, "While AMD continues to manage expenses admirably - OpEx declined ~11% y/y in 2014 and ~55% from its peak in C1Q08 - we continue to struggle with unfavorable structural headwinds: (1) Gaming likely peaked in 2014, (2) advantages of HSA still unclear and 2 semi-custom designs unlikely to ramp before 2016 (~$300m/year), (3) share loss in core PCs -AMD computing rev was down $370m y/y in 2H14 or ~10-15m units and (4) AMD is quickly loosing scale with a less defined Moore's Law road-map and an R&D budget down 50% since 2008 and 1/10 of INTC's."

The firm is lowering CY15 EPS (excl options) to $0.00 from $0.16 and initiating a CY16 EPS of $0.16.

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 $2.24 yesterday.