Nomura Securities Maintains a 'Reduce' on Intel (INTC); Change in Outlook May Highlight Issues Beyond HDDs
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Price: $102.50 -1.97%
Rating Summary:
24 Buy, 39 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
24 Buy, 39 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Reduce' on Intel (NASDAQ: INTC) price target of $21.00.
Nomura analyst, Romit Shah, said, "Intel reduced its Q4 revenue and gross margin outlook on lower PC production driven by HDD shortages. Intel now expects Q4 revenue to be $13.7bn (- 4% q/q), down $1bn from the mid-point of earlier guidance of $14.7bn (+3.5% q/q). We are lowering Q4 estimates from $14.5bn/$0.69 to $13.7bn/$0.61 (consensus $0.68), and 2012 estimates from $56.4bn/$2.40 to $53.4bn/$2.10 (consensus $2.53).We believe yesterday’s negative preannouncement has to do with more than just shortages in HDDs. We would not be surprised to see below-seasonal growth in Q1 and Q2 given lack of PC catalysts (Windows 8 likely Q3 event), increasing ASP pressure, and slowing China and Europe."
For an analyst ratings summary and ratings history on Intel click here. For more ratings news on Intel click here.
Shares of Intel closed at $24.00 yesterday.
Nomura analyst, Romit Shah, said, "Intel reduced its Q4 revenue and gross margin outlook on lower PC production driven by HDD shortages. Intel now expects Q4 revenue to be $13.7bn (- 4% q/q), down $1bn from the mid-point of earlier guidance of $14.7bn (+3.5% q/q). We are lowering Q4 estimates from $14.5bn/$0.69 to $13.7bn/$0.61 (consensus $0.68), and 2012 estimates from $56.4bn/$2.40 to $53.4bn/$2.10 (consensus $2.53).We believe yesterday’s negative preannouncement has to do with more than just shortages in HDDs. We would not be surprised to see below-seasonal growth in Q1 and Q2 given lack of PC catalysts (Windows 8 likely Q3 event), increasing ASP pressure, and slowing China and Europe."
For an analyst ratings summary and ratings history on Intel click here. For more ratings news on Intel click here.
Shares of Intel closed at $24.00 yesterday.
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