Susquehanna Remains Neutral on Intel (INTC) Following 3Q Results
Susquehanna reiterated a Neutral rating and $30.00 price target on Intel (NASDAQ: INTC) following the company's 3Q15 earnings results. INTC reported revenue of $14.565 bln, up 10% Q/Q, vs. consensus of $14.22 bln. EPS beat consensus by 5c.
Analyst ChrisCaso commented, "INTC posted results that were ahead of expectations for 3Q, and essentially in line with expectations for 4Q. Data center came in a little weaker than expectations due to weakness in enterprise, and was offset by strength in PC component ASPs. Looking forward, we do think the PC market is likely to experience a tailwind in 2016 as Skylake and Windows 10 begin to impact the market. We think the company’s position in data center remains secure (albeit with persistent macro concerns), and we expect a further reduction in mobile operating losses next year. Despite these factors, however, we find it difficult to get INTC earnings past $2.50 even under a highly favorable scenario, and we think that level of earnings power caps the stock in the mid-30s. We had been hoping for a better entry point and a more favorable stock setup for 2016. But we still haven’t gotten our wish, and we therefore remain on the sidelines."
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Shares of Intel closed at $32.04 yesterday.