Jefferies Has Hold on Advanced Micro Devices

Jefferies & Co. is out with a research report on Advanced Micro Devices

and it has a Hold rating and a $7 price target on shares. In a note to clients, Jefferies & Co. writes, "AMD beat lowered expectations, and the playbook says to buy high beta, unloved stocks after a confession at the bottom of the cycle - which is where we've argued semis are. The stock is inexpensive at 0.6x EV/S, but we struggle with a number of Industry and AMD specific issues: 1) 32nm yields, 2) accelerating PC MPU shipments, 3) increasing MPU ASPs, 4) HDD risk in PC supply chain. We think AMD goes up with the group." Shares of AMD are up 59 cents in pre-market trading to $5.92, a gain of 11.07%.