Canaccord Genuity Raises Price Target on Intel (INTC) After Meeting with Management
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Canaccord Genuity reiterated a Buy rating on Intel (NASDAQ: INTC), and raised the price target to $44.00 (from $40.00), after meeting with management. meetings were upbeat and focused on the diversification of DCG opportunities and visibility against stronger 2H/16 guidance in DCG. The meetings also covered the KabyLake launch and overall trends toward PC stabilization longer-term, and the recently announced sale of McAfee.
Analyst Matthew Ramsay commented, "After meeting a broad cross-section of Intel management at recent IDF and Hot Chips conferences, we recently hosted a full day of upbeat investor meetings with Gary Willihnganz from Intel investor relations in Toronto. While overall long-term PC and enterprise server trends are likely to remain mixed, our meetings were generally upbeat with focus on the diversification of DCG opportunities and visibility against stronger 2H/16 guidance in DCG, the KabyLake launch and overall trends toward PC stabilization longer-term, and the recently announced sale of McAfee. Following the meetings and the coincident iPhone 7 launch where we believe Intel modem potential share has likely expanded from 30% toward 40-50%, our thesis remains unchanged and we raise estimates consistent with Intel's positive Q3/16 pre-announcement last Friday citing better PC market trends and inventory re-stocking. While pre-announced results were much better than original guidance, we believe investors will still be anxious to confirm re-accelerating growth in DCG with the first full quarter of 14nm Broadwell server CPUs and first material sales of 2nd-generation Xeon Phi, Silicon Photonics and OmniPath fabric products that should combine to push DCG growth back toward the midteens target and to double-digits for the full year. We increase our estimates and price target to $44 from $40 following our meetings and Intel's pre-announced Q3/16 results and believe an attractive dividend yield and valuation make Intel a compelling core stock holding in our view. We reiterate our BUY rating."
Shares of Intel closed at $37.16 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesMcAfee Intel Merger, Canaccord Genuity
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