Nomura Securities Maintains a 'Reduce' on Intel (INTC); See Evidence ASPs Are Softening
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Rating Summary:
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Rating Summary:
23 Buy, 25 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
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Nomura Securities maintains a 'Reduce' on Intel (NASDAQ: INTC) price target of $25.00.
Analyst, Romit Shah, said, "We see evidence that ASPs are softening. Our research indicates that aggressive pricing on Core i3 Ivy Bridge parts contributed to AMD’s miss on Monday. We also believe earlier in the quarter that there were price cuts to support lower price points for Ultrabooks. We are lowering our estimates from $14.5b/$0.63 to $14.3b/$0.61 in Q3, from $57b (+6%)/$2.47 to $56b (+4%)/$2.36 in CY12, and from $61b (+8%)/$2.70 to $59b (+5%)/$2.50 in CY13. Intel’s valuation is attractive on earnings (10x vs. 11.5x comp), but at a premium on free cash flow (12.5x vs. 11x comp)."
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 $25.39 yesterday, with a 52 week range of $19.16-$29.27.
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Analyst, Romit Shah, said, "We see evidence that ASPs are softening. Our research indicates that aggressive pricing on Core i3 Ivy Bridge parts contributed to AMD’s miss on Monday. We also believe earlier in the quarter that there were price cuts to support lower price points for Ultrabooks. We are lowering our estimates from $14.5b/$0.63 to $14.3b/$0.61 in Q3, from $57b (+6%)/$2.47 to $56b (+4%)/$2.36 in CY12, and from $61b (+8%)/$2.70 to $59b (+5%)/$2.50 in CY13. Intel’s valuation is attractive on earnings (10x vs. 11.5x comp), but at a premium on free cash flow (12.5x vs. 11x comp)."
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 $25.39 yesterday, with a 52 week range of $19.16-$29.27.
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