Amid Light Guidance, There was Much to Like About Intel's (INTC) Q4 Report - Cowen
Cowen and Company reaffirms its Market Perform rating and $35 price target on Intel (Nasdaq: INTC) following Q4 results issued on Thursday night.
Analyst Timothy Arcuri commented, While CQ1 guide was slightly disappointing and full-yr not w/o risk China demand concerns are hardly INTC specific, Taiwan ODMs are sounding a bit better, and ASP guide also seems conservative. There is a lot more here to like than not. SPE readthrough (optically slightly negative) belies a renewed commitment to get back on normal Moore's Law cadence.
Arcuri continued: While INTC is guiding to low-end of normal seasonal ex-ALTR, much of this seems due to China demand concerns - clearly not an INTC-specific issue. Full year guide could have been a bit more conservative in the face of these issues but PC (where China exposure is greatest) is also being implied down low or even mid singles, while DCG has relatively less exposure to China and cloud investment trends remain strong.
To that end, 3D X-Point is a huge game-changer that we think ultimately drives a new server upgrade cycle as CPU performance will matter again. Tactically, INTC is back up to ~10% premium versus LC tech peers on forward P/E, materially above its normal ~5% discount but a $30 price would give runway to our $35 price target,
the analyst noted.
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