Cowen Boosts PT on Intel (INTC) to $33 Post-Q2 Results

Cowen and Company is lifting its price target on Intel (Nasdaq: INTC) from $27.50 up to $33 following Q2 results issued Tuesday night.

Analyst Timothy Arcuri noted the following positives and negatives from the report:

Positives -

1. INTC putting up record GM's in the face of intensifying losses in mobile; as these bottom in CQ2/CQ3, this adds meaningful leverage to the P&L w/what we think is the potential for ~$0.15-0.20 EPS accretion as a baseline in '15, all things equal;
   
2. new $20B buyback indicates high degree of confidence in CF generation even in a downturn; and
   
3. the "tock" year in '15 promises to add new architectures on what appears to remain untouchable 14nm process technology and bringing SoFIA in-house in 2H:15 remains a potential game-changer in INTC's mobile narrative.

1. while easy to say GM's have downside from here, ramping depreciation remains a potentially big issue heading into '15 and '16 in particular;
   
2. while losses in mobile are now largely discretionary, real success seems to hinge on winning AAPL (we do think it is making some early in-roads, more likely low-end); and
   
3. consumer PC (~60% of TAM) remains soft w/even a dead cat bounce unlikely if AAPL pivots the notebook market again in '15 with a new tablet that acts like a NB.

For an analyst ratings summary and ratings history on Intel click here. For more ratings news on Intel click here.

Intel closed at $31.71 yesterday.

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