RBC Capital Downgrades Intel (INTC) to Sector Perform, PC Market Headwinds Lead Us to Reduce Unit Estimates
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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 downgraded Intel (NASDAQ: INTC) from Outperform to Sector Perform with a price target of $24.00 (from $28.00) as part of broader Semiconductor Sector downgrade.
Analyst Doug Freedman comments, "Our broader sector downgrade reflects the level of semiconductor internal inventories, which remain elevated as macro conditions do not appear set to make a material move higher or lower. Our view is that semiconductor growth rates have compressed to a level such that inventory cycles are not able to drive equity valuation outperformance. We believe that at this point in the cycle, it is prudent to rotate into wireless communications names exposed to winning platforms while reducing exposure to the PC ecosystem given our reduced unit demand forecasts."
For 2012 the firm is PC unit growth to -2.8% (or 365mil units) from +2.0% (or 383mil units). For 2013 they are reducing PC unit growth to flat (or 366mil units) from +7.7% (or 412mil units).
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 $23.31 yesterday.
Analyst Doug Freedman comments, "Our broader sector downgrade reflects the level of semiconductor internal inventories, which remain elevated as macro conditions do not appear set to make a material move higher or lower. Our view is that semiconductor growth rates have compressed to a level such that inventory cycles are not able to drive equity valuation outperformance. We believe that at this point in the cycle, it is prudent to rotate into wireless communications names exposed to winning platforms while reducing exposure to the PC ecosystem given our reduced unit demand forecasts."
For 2012 the firm is PC unit growth to -2.8% (or 365mil units) from +2.0% (or 383mil units). For 2013 they are reducing PC unit growth to flat (or 366mil units) from +7.7% (or 412mil units).
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 $23.31 yesterday.
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