Cowen Trims PT on Intel (INTC) to $33 Following Q1 Results; L-T Earnings Growth Remains Dim

Cowen and Company trims its price target on Market Perform-rated Intel (Nasdaq: INTC) from $36 to $33 following Q1 results reported Tuesday night.

On Intel's results, analyst Timothy Arcuri commented, INTC full year guide was not unexpected, but also requires '15 to be the most H215-loaded year since the '09 recovery - a factor which raises some eyebrows given ongoing questions around PC demand + mix shift to low-end given USD strength. Despite the massive 2H revs ramp, GM still only guided flat to down as the delayed effects of under-utilization + commingled 14nm/10nm startup costs dampen any cyclical whip in GM. With the lack of any GM whip + risk to 2H probably more skewed to downside, the historical playbook would argue the stock is dead money for a while even if we are believers in the forecast given that INTC will exit 1H:15 having materially under-shipped the PC market for 3Qs in a row.

Big picture, we still can't see long-term EPS power any better than $3.40 - and this is hardly a slam dunk as it implies zero losses in mobile and -2 percent and 13 percent LT growth for PCG and DCG respectively.

For an analyst ratings summary and ratings history on Intel click here. For more ratings news on Intel click here.

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