UBS Reiterates a 'Buy' on Intel (INTC); Product Cycle Strength Bolsters Outlook

UBS reiterates a 'Buy' on Intel (NASDAQ: INTC) price target raised $1 to $31.00.

UBS analyst says, "INTC 4Q results were ahead of estimates on relative sales strength in both PC Client and Data Center groups. While 1Q sales guidance of $12.8bn was in line, we raise estimates and PT to $31 for 3 key reasons: 1) Better than expect gross margin outlook, 2) Benign ASP guidance, reflecting confidence in the Ivy Bridge product cycle, 3) R&D/capex increases that reaffirm expected strong 22nm/14nm opportunities, where Intel could add sales in smartphones & tablets where it does not participate on top of bolstering its solid PC franchise."

"We slightly raise our 1Q12 sales/EPS estimates to $12.85bn/$0.50 and on the solid 2012 sales and gross margin guidance, we raise 2012E sales/EPS to $58.4bn/$2.60. On expected product cycle and gross margin strength, for 2013/14, we raise our sales estimates by 3%/5% to $63.9bn/$67.9bn and EPS by 3%/9% to $2.78/$3.03."

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 $25.63 yesterday.

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