Intel (INTC) Remains Top Pick at Wells Fargo

January 2, 2014 8:45 AM EST
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Price: $36.84 +0.74%

Rating Summary:
    42 Buy, 20 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 29 | Down: 29 | New: 23
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Wells Fargo reiterate an Outperform rating on Intel (NASDAQ: INTC) with a price target of $26-$30. Analyst David Wong said the stock remains a top pick and he thinks the company is well positioned for growth in 2014.

"We see Intel as a universal processor company, with a rich range of products that address all forms of computing, from high-end servers through desktops, notebooks, tablets and smartphones, to future potential markets such as wearables. In our view: (1) the server market offers excellent growth potential, (2) Intel will continue to penetrate to tablet processor space in 2014, (3) Intel remains the leader in chip manufacturing and technology, (4) Intel could win more foundry customers, (5) Investors could be surprised by a PC end market recovery in 2014," said Wong.

In a separate note, Wong said he was optimistic about semiconductor fundamentals, projecting 8-12% growth. However, this may already be reflected in stock prices.

"Following a soft patch towards the end of 2013, we expect chip growth to accelerate through 2014 in the 8-12% range. This is potentially 2-3x the 4-5% growth projections of various market research organizations such as WSTS and Gartner, and represents steady improvement from a 3% decline in 2012 and 4-6% growth in 2013. Despite our expectation of improving semiconductor fundamentals, we have a mixed view of chip stocks as a group, having downgraded semiconductors to a Market Weight sector rating from Overweight on October 18, 2013," he said.

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 $25.96 yesterday.

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