Wells Fargo Upgrading Advanced Micro Devices

Wells Fargo Securities is out with a research report on Advanced Micro Devices AMD after it reported earnings last night, and it is upgrading the name to Market Perform and raising estimates. It has a $6.00-$7.50 price target on shares. In a note to clients, Wells Fargo Securities writes, "AMD's June quarter results were in line with original guidance, proving us wrong in our concerns that microprocessor market share losses would lead to a shortfall to the company's and investors' expectations. In addition, the stock is now trading within our valuation range. As a result, we are upgrading AMD to Market Perform from Underperform. Our 2011 EPS estimate rises to $1.16 from $0.95. Our 2012 EPS estimate rises to $0.83 from $0.73. We are adjusting our valuation range, to $6-7.50, from a prior $5.50-7.50, based on approximately 7.5x to 9x our 2012 EPS estimate of $0.83." Shares of AMD are up 59 cents in pre-market trading to $7.09, a gain of 9.08%.