Advanced Micro Devices Inc (AMD): More on UBS upgrade UBS ups AMD to 'n...

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KeithDust2000

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KeithDust2000

Re: KeithDust2000 post# 14726

Tuesday, 10/07/2003 10:53:49 AM

Tuesday, October 07, 2003 10:53:49 AM

More on UBS upgrade

UBS ups AMD to 'neutral' vs 'reduce' (AMD) By Ciara Linnane
NEW YORK (CBS.MW) -- Analyst Thomas Thornhill at UBS raised his rating on Advanced Micro Devices (AMD) to "neutral" from "reduce" and upped his price target, directing investors to focus more on the company's breakeven tartget and Athlon 64 units than on processor share losses. "We believe that AMD's flash business is witnessing strong growth this quarter, growing roughly 15 percent quarter-on-quarter organically," Thornhill told clients in a note. At the same time, the company's notebooks are tracking in line with estimates, he said. UBS is raising its third quarter sales forecast to $895 million from a previous $865 million, but sticking with its estimate of a loss per share of 34 cents due to higher costs. The brokerage is raising its price target to $12 from $5. AMD closed the previous session up 2.3 percent at $12.16.

I also expect market share losses over the next quarters - we´ve always known that the K8 ramp and 90nm conversion would impact overall production volume, and coupled with a growing PC market, share losses are inevitable. I don´t like the "higher cost" part though.

Keith