Today's most important downgrades

Craig-Hallum downgraded AMD (NASDAQ: AMD) to Hold from Buy with a price target of $76, noting that the company’s growth is slowing following multiple years of strong execution and market share gains.

"While AMD has executed very well for multiple years, we believe the company may now have become a victim of its own success," said the firm. However, it believes AMD is positioned to continue executing well, gain share, and grow, but that it will likely be at a "more marginalized pace."

Shares jumped more than 12% today after the company’s reported Q4 results encouraged hopes that the worst may be over for the chipmaker, with EPS/revenues coming in better than the consensus estimates.

For Q1/23 the company expects revenue in the range of $5-5.6 billion, compared to the consensus of $5.48B.

UBS downgraded Snap Inc (NYSE: SNAP) to Neutral from Buy with a price target of $10.00. On the upside, the firm sees potential revenue reacceleration on solid user growth and traction on ad tech driving eventual spend, while on the downside it sees “increasing competition everywhere”.

Shares plunged more than 10% today following the company’s reported Q4 results, highlighted by slowing revenue growth as digital ad struggles continue.

BofA Securities downgraded Electronic Arts (NASDAQ: EA) to Neutral from Buy and cut its price target to $130.00 from $155.00 following the company’s Q3 miss, which resulted in a share price drop of more than 9% today.

Q3 net bookings of $2.34B (down 5% year-over-year) came in below the consensus estimate of $2.49B, with both Full Game and PC/Console Live Services well below the Street. Weakness in small titles and new launches (NHL 23, Need For Speed) drove downside to the Street’s Full Game estimates, while longtime franchises FIFA and Madden held up well.

Jefferies downgraded Yum China Holdings (NYSE: YUMC) to Hold from Buy while raising its price target to $64.00 from $57.00.

Wells Fargo downgraded American Electric Power (NASDAQ: AEP) to Equal Weight from Overweight and cut its price target to $99.00 from $108.00.

Northcoast Research downgraded Cognex (NASDAQ: CGNX) to Neutral from Buy.

By Davit Kirakosyan

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