Auriga Maintains a 'Buy' on Intel (INTC); Beat & Raise

Auriga maintains a 'Buy' on Intel (NASDAQ: INTC), PT $26.

Auriga analyst says, "Consensus was clearly too pessimistic on PC sales (the primary source of upside) -- bears will likely argue that INTC's results in this segment are disconnected from other indicators, and we don't disagree that growth here is under pressure from both tablet competitors and overall economic conditions. However, even if client slows, data center will likely bolster both revenue and profitability -- our work still suggests that consensus is missing the big positive impact of direct customers like Google (Nasdaq: GOOG)(NotRated). We still prefer to keep it simple -- 2011 EPS now looks to be well north of $2.00, dividend yield is 3.6%, the stock is trading at a deep discount to the market and other semiconductor stocks, and INTC's products are still in demand across the compute spectrum -- we see many reasons to remain positive."

"Our Q211 revenue/pro-forma EPS goes to $12.8bln/$0.52 (consensus $11.9bln/$0.46) from $11.3bln/$0.42; CY11 goes to $52.5bln/$2.29 (cons. $49.5bln/$2.04) from $48.1bln/$1.92; CY12 now $53.7bln/$2.34 (cons. $53.0bln/$2.21) from $50.8bln/$2.16. Our $26 target is 11x our CY12 EPS estimate of $2.34."

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

Shares of Intel closed at $19.86 yesterday.

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