Sterne Agee Reiterates Buy Rating on Advanced Micro Devices

Sterne Agee is out with a research report this afternoon, where it reiterates its Buy rating on Advanced Micro Devices AMD; it has a $15.00 price target on the stock. The SA analysts cited the company's recent announcement that they have appointed a new CEO. AMD has been without a permanent CEO since Dirk Meyer left on January 10th, 2011, which has been a significant overhang on the shares with constant speculation. The analysts believe the appointment – a smart move – should help AMD refocus on its markets and strategy. As for valuation, the analysts remarked, “Our estimates remain intact with C11E at $6.76B/$0.53, C12E of $7.48B/$0.96 and C13E revenues/EPS of $7.94B/$1.02. We believe the Llano and Bulldozer Server product roadmaps, OpEx control, our FCF estimates of $1B+ into CY13 and now a permanent CEO will all be positive catalysts on AMD shares that have traded -20% YTD.”