Piper Jaffray Maintains an Overweight Rating on Intel (INTC) Following Supply Chain Meetings

Piper Jaffray maintains an Overweight rating and $38.00 price target on Intel (NASDAQ: INTC) following a supply chain meeting. Analyst Ruben Roy says that the PC market remains sluggish, but with the Windows 10 launch scheduled for July 29th, there is optimism for a Q3 comeback.

Roy commented, "While we continue to expect the eventual improvement of PC sales during the 2H, we are incrementally cautious on INTC's expectations for seasonal Q2 growth (even off of a much lower Q1 base), following supply chain meetings in Asia this week. Channel inventory digestion has continued thus far in Q2 and the typical beginning of the build season has been pushed into Q3. With visibility on the timing of the Windows 10 release, though, supply chain participants are expecting a snap-back in unit demand in Q3. We believe, however, that INTC's Skylake will ship later in Q3, which could further delay a meaningful PC build. In sum, we see moderate risk to near-term estimates but continue to believe that INTC will be able to achieve its full year guidance for flat Y/Y revenue. We would recommend investors opportunistically buy INTC shares on pull-backs through the upcoming earnings season."

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 $33.27 yesterday.

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