Goldman Sachs Downgrades Intel (INTC) to Sell Citing Looming Excess Supply

Goldman Sachs downgraded Intel (NASDAQ: INTC) from Neutral to Sell, citing valuation and looming excess supply. The firm cut their price target from $21 to $20.

Goldman said the 22% month-over-month increase in the stock is unjustified. Goldman sees a number of issues including: processor shipments slowing over the course of the year; 2012 Street EPS reductions as record 2011 capex impacts ASPs and COGS; and increased competition from ARM-based processors in tablets and eventually in mainstream PCs.

Goldman also downgraded KLA-Tencor (Nasdaq: KLAC) to Sell, Applied Materials (Nasdaq: AMAT) to Neutral and upgraded Lam Research (Nasdaq: LRCX) to Buy

For more ratings news on Intel click here and for the rating history of Intel click here.

Shares of Intel closed at $23.88 yesterday.

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