Nomura Securities Maintains a 'Reduce' on Intel (INTC); Lowering Estimates Given Expectation for Weakness in Servers Segment

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

Nomura analyst, Romit Shah, said, "The Data Center Group (servers) has sustained Intel’s strong growth over the past six quarters as revenues in this segment grew 35% in 2010 and 15% yoy in Q2. A key driver was Internet capex spending. While long-term secular trends for servers remain positive, Internet capex growth is slowing. That combined with recent weakness in enterprise and pushout of the next-gen server platform leads us to believe that DCG will not continue to offset weak consumer PC demand over the coming periods. We lower Q4E EPS to $0.57 from $0.58 and 2012E EPS to $2.00 from $2.10."

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

Shares of Intel closed at $19.64 yesterday.

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