Markets & Finance

UBS Trims Advanced Micro Outlook


UBS Financial cut its estimates and target on Advanced Micro Devices (AMD).

Analyst Tom Thornhill says he's cutting his estimates and target based on the belief that AMD will face increasing pricing pressure in its processor business, and more competition in its flash business. He notes rival Intel's accelerated x86-64 bit strategy is expected to have a competitive impact in the second half of 2004 and 2005. Also, he notes Intel's shift towards 90nm manufacturing, which should enable the company to lower costs, will enable Intel to use pricing as a weapon against Advanced Micro.

Thornhill cut the $5.2 billion 2004 sales estimate to $5.1 billion, and trimmed the 31 cents earnings per share estimate to 28 cents. He trimmed the $6.4 billion 2005 sales estimate to $5.9 billion, and cut the 87 cents earnings per share estimate to 72 cents. Thornhill lowered the $20 target to $17, and maintains the neutral rating.


We Almost Lost the Nasdaq
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus