Nomura Securities Maintains a 'Reduce' on Intel (INTC): Bear Case Growing

Nomura Securities maintains a 'Reduce' on Intel (NASDAQ: INTC) price target of $18.00.

Nomura analyst, Romit Shah, says, "Following the HP (NYSE: HPQ) spinoff, it strengthens our bear case on Intel. We believe HP’s decision to spin off the Personal Systems Group reflects commoditization in the computing space, as consumers change the use of the PC. For Intel, the most significant implication, in our view, is greater pricing pressure in PC Client (PSG), which accounted for 64% of sales last quarter. Furthermore, we believe HP’s outlook for 2H11, consistent with Dell (Nasdaq: DELL) on Tuesday and NTAP on Wednesday, backs our view that Intel will miss Q3 guidance."

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

Shares of Intel closed at $19.77 yesterday.

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