Buy AMD (AMD) on Post Q2 Sell-Off - Jefferies

Jefferies analyst Mark Lipacis reiterated a Buy rating and $6 price target on AMD (NYSE: AMD) following Q2 results, lower Q3 rev guidance and the 20% sell-off in the stock. The firm said they view the sell-off as a overreaction and are buyers on weakness.

Lipacis comments, "2Q was in line, but AMD missed the high bar set by Intel's 2Q beat, and 3Q Street expectations by 5%. AMD is executing on its turnaround strategy and new product cycles, but was bitten by a Crypto-currency inventory correction and weaker consumer desktop. In 2H14, we think product cycles extend the turnaround, and expect 1-to-2 more semi-custom design wins. We view the 20% aftermarket sell off as an overreaction, and are particular buyers on weakness."

The firm lowered FY 2014 EPS from $0.55 to $0.13 and FY 2015 EPS from $0.69 to $0.63.

For an analyst ratings summary and ratings history on AMD click here. For more ratings news on AMD click here.

Shares of AMD closed at $4.57 yesterday.

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