Intel (INTC) PT Trimmed at FBR Capital, 'Outperform' Maintained

October 16, 2013 8:13 AM EDT
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FBR Capital analyst Christopher Rolland trimmed his price target on Outperform-rated Intel (NASDAQ: INTC) from $28 to $27 following Q3 results which were in-line, however, guidance was lowered.

"Intel Corporation released in-line 3Q13 results but disappointingly offered 4Q13 guidance below the Street," Rolland comments. "Indeed, PC growth remains elusive, particularly in 4Q13, which should have received the benefits of Bay Trail channel fill. While gross margins optically appeared better than the Street, they benefited from a transfer of expense from COGS to R&D. The company also pushed out the release of Broadwell by a quarter, which may modestly disrupt the supply chain and delay a small portion of sales. Regardless of the push out, Skylake is still expected to come to market on time in 1Q15. Constructively, management did lower capex by another $200 million as they lowered investment proportionate to new expectations. Overall, while headwinds in PC are discouraging, we acknowledge computing form factors will change over time. We believe Moore's Law is considerably more durable than any one computing form factor and presents as good a business plan as any in the technology industry. Moving forward, we are increasingly confident that Intel can opportunistically extract value from the extra transistors afforded to it through the best silicon manufacturing operations in the world; however, we are reducing our price target from $28 to $27, given near-term woes, representing 13x our 2014E GAAP EPS."

For an analyst ratings summary and ratings history on Intel click here. For more ratings news on Intel click here.

Shares of Intel closed at $23.39 yesterday.

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