Sterne Agee CRT Reiterates Buy on Intel (INTC) Following a 3Q EPS Beat
Sterne Agee CRT reiterated a Buy rating and $38.00 price target on Intel (NASDAQ: INTC) following the company's 3Q15 earnings results. INTC reported revenue and EPS of $14.47B and $0.64 vs. consensus of $14.24B and $0.58. Upside to Q3 was provided by better-than-expected CCG performance as a result of higher Gen 6 core product mix (Skylake) driving favorable ASPs.
Analyst Douglas Freedman commented, "INTC posted solid Q3 results with Q4 midpoint guidance $0.02 above street. Client Computing Group (CCG) upside came from Skylake launch that lifted ASPs; CCG also benefited from lower mobility losses. Data Center Group (DCG) Y/Y growth outlook was lowered to 10-12% from 15% prior due to macro headwinds but still above market longer term consensus of 10% y/y. Our thesis regarding double-digit DCG growth driving higher profitability and FCF remains intact as we see secular demand trends driven by cloud data center market share gains. We continue to be buyers of INTC with a price target of $38."
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Shares of Intel closed at $32.04 yesterday.