Needham & Company analyst, Quinn Bolton, cut his Intel (NASDAQ: INTC) price target to $42 from $43 after the company reported 3Q16 results near the high end of revised guidance and above his forecast.

Guidance for 4Q16 exceeded the analysts forecast but fell short of Street expectations due to anticipated PC supply chain inventory reductions and continued headwinds in the enterprise segment of DCG. Reflecting these continued headwinds, management now expects DCG revenue to increase by high single digits in 2016.

The analyst stated "though we are disappointed in the enterprise segment in DCG, we note all other segments of this business are growing at or above expectations and will soon account for the majority of DCG revenue".

No change to the Buy rating.

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Shares of Intel closed at $37.75 yesterday.