J.P. Morgan Neutral On Advanced Micro Devices

J.P. Morgan Chase & Co. is out with a research report on Advanced Micro Devices AMD after it reported earnings last night. It has a Neutral rating and a $8 price target on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "Yesterday, AMD reported 2Q11 EPS above Consensus, and guided for above seasonal growth in 3Q11 driven by higher than expected demand for its new microprocessor. While the stock appears cheap at 0.7X C11 sales, towards the low end of its historical range, and 8.6X our C12 EPS estimate, a discount to its peers, we are unsure whether the company can achieve consistent profitability given a slowing PC market and Intel's increasing capacity. As a result, we remain Neutral." Shares of AMD are up 51 cents in pre-market trading to $7.01, a gain of 7.85%.