Wells Fargo Positive on Intel (INTC) for 2013

December 31, 2012 10:11 AM EST
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Price: $36.80 --0%

Rating Summary:
    42 Buy, 20 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 9 | Down: 12 | New: 43
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Intel (NASDAQ: INTC) is mildly higher Monday following rare, positive analyst commentary about the company. Wells Fargo raised estimates, reiterated it as a top pick and said the company has many strengths heading into 2013.

Wells Fargo analyst David Wong said secular themes like cloud computing and data traffic created by mobile computing could drive x86 server-related processor growth in the mid-teens percentage range over the next several years. "In our view, Intel's Atom platform provides opportunity to gain share in the smartphone and tablet markets. Intel typically leads other advanced logic manufacturers by 1-3 years in linewidth transitions," the analyst said.

On the stock, Wong notes at forward P/E of 10-11x, the multiple remains suppressed despite record margins. Also, Intel has one of the highest dividend yields paid by chip
companies, with a yield of above 4% currently.

The firm raised its 2013 EPS estimate to $2.10 from a prior $2.02

The firm maintained their Buy rating and valuation range of $28-$33 on Intel.

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

Shares of Intel last traded at $20.38, up 0.72 percent.

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