NEW YORK (TheStreet) -- Bank of America downgraded semiconductor manufacturer Advanced Micro Devices (AMD) to "neutral" on fears its exposure to the low-end consumer PC segment makes it susceptible to market share losses to Intel (INTC) and existing weakness in the PC market. UBS also maintained its "neutral" rating but revised its price target to $4.10 from $4.50 on weakness in its core PC-related divisions.
Credit Suisse remained bearish on the stock with a price target of $3 and an "underperform" rating. "While we anticipate another profitable quarter in December, sustainability and magnitude of profits in CY14 are still a question mark," Credit Suisse wrote in its report.
AMD reported third-quarter net income of $48 million, or 6 cents a share, on revenue of $1.46 billion, 15% higher than a year earlier. Sales in its computer processing units division, however, dropped 15% compared to a year earlier, due to decreased PC demand. AMD is forecasting fourth-quarter revenue to gain 5%.
AMD shares plummeted 13.7% to $3.53 by the end of trading.
TheStreet Ratings team rates Advanced Micro Devices as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate Advanced Micro Devices (AMD) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and feeble growth in its earnings per share."
- You can view the full analysis from the report here: AMD Ratings Report