Another AMD Downgrade
August 28, 2007 by Douglas A. McIntyreIf Wall St. keeps downgrading AMD (AMD), there will be nothing but "sells" on the stock and analysts will have no place to go if things at the chip company get worse.
Barron’s writes that Citi cut its price target for the stock to $14 from $19.50. The call comes a little late. AMD trades at $11.98 and has not seen $20 since last January. The bank also said the AMD was becoming a more risky investment. It a research note picked up by the financial magazine’s website, Citi said “While AMD’s shares have fallen dramatically, we see little prospect for [market] share momentum in coming quarters, and expect poor financial performance as a result."
Since it began to challenge Intel (INTC) for server and PC market share and the larger company fought back with price cuts and new product, AMD has been in a world of hurt. It has pending antitrust cases against Intel, but, if it does not win those, the company’s problems may never end.
How CEO Hector Ruiz hangs on to his job in this activist environment is something of a miracle.
Douglas A. McIntyre
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