Stifel Raised Price Target on Intel (INTC) to $37 Following 4Q earnings and Outlook

Stifel reiterated a Buy rating on Intel (NASDAQ: INTC), and raised the price target to $37.00 (from $36.00), following the company's 4Q earnings report, and outlook. Revenue of $14.9bn was up 3.1% q/q and up 1.6% y/y, above the prior guidance midpoint and the Streets estimate of $14.8bn. 1Q16 outlook on non-GAAP also beat Street estimates. One-time charges related to the Altera acquisition lowered GAAP EPS estimates.

Analyst Kevin Cassidy commented, "Intel turned in a solid beat to revenue, GM and earnings. 1Q16 outlook on non-GAAP also beat our and Street estimates. One-time charges related to the Altera acquisition lowered GAAP EPS estimates. Intel continues to outperform the PC market through increasing ASPs of its PC processors. Also, strong demand for the company's Xeon processors in Cloud services data centers is offsetting weakening Enterprise demand. Expected re-use of capital equipment lowered 2016 CapEx guidance to $9.5bn from $10bn. Also, the company extended its depreciation schedule, due to increased equipment re-use, from 4 years to 5 years. We maintain our Buy rating on the INTC shares as a defensive investment in this volatile start to the new year."

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 $32.74 yesterday.

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