Close

Intel (INTC) Mobile Could See a Dramatic Improvement in Profitability - Sterne Agee CRT

November 9, 2015 8:59 AM EST
Get Alerts INTC Hot Sheet
Price: $44.02 +0.57%

Rating Summary:
    21 Buy, 32 Hold, 9 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
Join SI Premium – FREE

Douglas Freedman from Sterne Agee CRT is making a bold call and saying that Intel's (NASDAQ: INTC) Mobile business unit is finally starting to see the light of day. He believes Intel is preparing to ramp material production of its 7360 modem chipset in mid-2016. As a result, he is adding $850M worth of incremental modem sales and $500M from an extra 1-week benefit in 2016, adding $0.11 to 2016 EPS.

Based on his conversations with supply chain partners, he believes INTC has been prepping its supply chain for the 7360 modem chipset with potential production running between 10M-30M unit a month. Freedman estimates this will translate into production of 15M units/month at ASP of between $12 to $15 leading to the $850 in incremental revenue.

The increased modem sales could reduce the mobility losses by an additional ~$400M in 2016, adding to the impact from improved cost structure of tablet products.

He reiterated his Buy rating and $38 PT.

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 $33.84 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS Change, Hot Comments

Related Entities

Sterne Agee