RBC Capital Cut Price Target to $33 on Intel (INTC) Following 4Q Earnings
RBC Capital maintained a Sector Perform rating on Intel (NASDAQ: INTC), and cut the price target to $33.00 (from $35.00), following the company's 4Q earnings report. INTC reported revenues and EPS of $14.9B and $0.74 compared to the Street's $14.81B and $0.63 estimates.
Analyst Amit Daryanani commented, "While INTC reported an impressive Dec-qtr print, investors will be concerned around - 1) DCG slowdown in Dec-qtr and risk to further headwinds, 2) Gross margin dynamics as we go forward, and 3) Muted leverage in the model at this point. INTC reported an impressive beat in Dec-qtr that was driven by pricing leverage similar to the Sept-qtr (ASPs +6% y/y in NB, +9% in DT). Though our forward EPS estimates are going up, we note they are not comparable on a y/y basis due to the nonGAAP to GAAP transition (Dec-15 results are GAAP and comparable). We expect acquisition-related costs to trend down over the course of the year, with results more comparable on a y/y basis as the year progresses and ALTR is integrated. We include an exhibit on pg.4 with a model to illustrate the differences in guidance on a GAAP vs. non-GAAP basis. Maintaining Sector Perform and adjusting price target to $33 from $35."
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Shares of Intel closed at $32.74 yesterday.