Intel (INTC) PT, Estimates Raised at Jefferies Post Q3; Sees Gross Margin Rising to 70%
Jefferies analyst Mark Lipacis reiterated a Buy rating on Intel (NASDAQ: INTC) while raising estimates and his price target to $37.00 (from $36.00) following Q3 earnings and outlook after the close. The analyst said gross margin can rise to 70%.
"INTC posted a $0.05 beat for 3Q results and 4Q outlook, in part due to better gross margins," Lipacis commented. "INTC stock has historically correlated with its GM, and we think GM will expand toward 70% over the next two years driven primarily from its manufacturing leadership. We raise our GM forecast, EPS estimates and price target, and reiterate our Buy rating."
The firm raised Q3 EPS from $0.61 to $0.65, FY 2015 EPS from $2.14 to $2.25 an FY 2016 EPS from $2.39 to $2.46.
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Shares of Intel closed at $32.04 yesterday.