RBC Capital Cuts PT and Estimates on Intel (INTC); Timing Not Good; NVDA & MU Overdone
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Price: $90.07 -2.24%
Rating Summary:
24 Buy, 39 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
24 Buy, 39 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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RBC Capital maintains an 'Outperform' on Intel (NASDAQ: INTC) price target of $28.00 (from $30.00).
Analyst, Doug Freedman, said, "The bad news in the PC market has been well-documented through the summer period, and is related to several reasons: 1) lackluster back-to-school builds; 2) weakness in China; 3) slow introduction of Ultrabooks; and 4) strength in the tablet market (suggesting cannibalization). Longer-term we believe that trends in the Data Center remain strong, as its high-margin nature should partially offset impact to gross margins should PC demand remain sluggish. Maintain our view that INTC still offers a flight to safety for investors given cash flow flexibility, partially seen in its 3.7% yield."
Separately, Freedman thinks the sell-off in NVIDIA (Nasdaq: NVDA)(down 3%) and Micron (NYSE: MU)(down 5.5%) are overdone. He also thinks this is bad timing, considering Win8/Ultrabook counterattacks as tablets gain share.
FY12 EPS estimate lowered from $2.41 to $2.18 and FY13 from $2.58 to $2.22. FY12 revenues lowered from $55.6B to $53.2B and FY13 from $59.2B to $55.0B.
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 $25.10 yesterday.
Analyst, Doug Freedman, said, "The bad news in the PC market has been well-documented through the summer period, and is related to several reasons: 1) lackluster back-to-school builds; 2) weakness in China; 3) slow introduction of Ultrabooks; and 4) strength in the tablet market (suggesting cannibalization). Longer-term we believe that trends in the Data Center remain strong, as its high-margin nature should partially offset impact to gross margins should PC demand remain sluggish. Maintain our view that INTC still offers a flight to safety for investors given cash flow flexibility, partially seen in its 3.7% yield."
Separately, Freedman thinks the sell-off in NVIDIA (Nasdaq: NVDA)(down 3%) and Micron (NYSE: MU)(down 5.5%) are overdone. He also thinks this is bad timing, considering Win8/Ultrabook counterattacks as tablets gain share.
FY12 EPS estimate lowered from $2.41 to $2.18 and FY13 from $2.58 to $2.22. FY12 revenues lowered from $55.6B to $53.2B and FY13 from $59.2B to $55.0B.
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 $25.10 yesterday.
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