AMD: S&P Downgrades to Sell on Valuation
Standard & Poor’s analyst Clyde Montevirgen today cut his rating on Advanced Micro Devices (AMD) to Sell from Hold on a valuation basis. He notes that the stock has moved higher today on its agreement to sell its digital TV business to Broadcom (BRCM). The analyst notes that the deal will “provide needed cash and reduce operating expenses.” And he also expects increasing sales of new chips to help margins. But Montevirgen nonetheless thinks “losses will continue to weigh on the stock,” and maintains a $5.50 price target.