FBR Capital Maintains a 'Market Perform' on Intel (INTC); 2Q PC Checks Getting Worse; Cutting Estimates and Target
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Price: $34.66 +1.11%
Rating Summary:
21 Buy, 32 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
21 Buy, 32 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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FBR Capital maintains a 'Market Perform' on Intel (NASDAQ: INTC), lowers PT from $27 to $25.
FBR analyst says, "Checks with the top six notebook ODMs have deteriorated of late, with 1Q notebook builds downticking slightly from –10.5% QOQ to –11% QOQ, and with 2Q builds downticking from an optimistic +15% QOQ (which we said was likely to be reduced) to +7% QOQ, worse than expected. While notebook demand could improve, and builds could get ratcheted up by June, our contacts suggest Intel's Sandy Bridge products are not stimulating as much end demand as expected. For Intel, we are cutting our financial estimates slightly due to our inclusion of McAfee-related amortization of intangible expenses, and as we shave another point from our Intel 2011 unit growth forecast, which now stands at +7% YOY (excluding Intel's 14th week in 1Q11). While we remain two pennies above consensus for 1Q11, we are modeled in line with consensus for 2Q11, and we generally think Intel could progress with muted upside as it integrates McAfee (NYSE: MFE) and contends with a still-sluggish PC market. Indeed, it is difficult to get excited about PC unit growth, and INTC shares could keep moving sideways for an indeterminate amount of time." (Lowers FY11 EPS from $2.10 to $2.05 and FY12 from $2.20 to $2.15)
For more ratings news on Intel click here and for the rating history of Intel click here.
Shares of Intel closed at $20.46 yesterday.
FBR analyst says, "Checks with the top six notebook ODMs have deteriorated of late, with 1Q notebook builds downticking slightly from –10.5% QOQ to –11% QOQ, and with 2Q builds downticking from an optimistic +15% QOQ (which we said was likely to be reduced) to +7% QOQ, worse than expected. While notebook demand could improve, and builds could get ratcheted up by June, our contacts suggest Intel's Sandy Bridge products are not stimulating as much end demand as expected. For Intel, we are cutting our financial estimates slightly due to our inclusion of McAfee-related amortization of intangible expenses, and as we shave another point from our Intel 2011 unit growth forecast, which now stands at +7% YOY (excluding Intel's 14th week in 1Q11). While we remain two pennies above consensus for 1Q11, we are modeled in line with consensus for 2Q11, and we generally think Intel could progress with muted upside as it integrates McAfee (NYSE: MFE) and contends with a still-sluggish PC market. Indeed, it is difficult to get excited about PC unit growth, and INTC shares could keep moving sideways for an indeterminate amount of time." (Lowers FY11 EPS from $2.10 to $2.05 and FY12 from $2.20 to $2.15)
For more ratings news on Intel click here and for the rating history of Intel click here.
Shares of Intel closed at $20.46 yesterday.
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