Intel Corp. (INTC) - Bear of the Day

By Zacks | October 18, 2012 AAA

We are downgrading Intel Corporation
(INTC) shares from Neutral to Underperform following the company's lowered expectations for the next quarter. We think that weakness in mature markets, economic headwinds in some emerging markets and pressure from tablets and other competitors are taking a toll on the company.



We think current trends overshadow Intel's $0.04 positive surprise versus the Zacks Consensus in the second quarter that was driven by strength in server and software businesses and supported by a moderate PC business. However, we remain positive about Intel's dominance in the high-margin server segment and promise of success in the mobile segment, although competition from ARM-based devices continues to intensify.



We believe that Ultrabooks and Win-8 are wild cards this holiday season and could skew results either way. We are also lowering our target price to $20.00, which is 9.4X our earnings expectations for 2012.



You May Also Like

Related Analysis
  1. Stock Analysis

    Merck Up on OncoEthix Acquisition Deal, Oncology in Focus - Analyst Blog

  2. Stock Analysis

    ALLETE Buys NRG Energy's Storm Lake 1 Iowa Wind Farm - Analyst Blog

  3. Stock Analysis

    Starwood Expands in Colombia with Four Points by Sheraton - Analyst Blog

  4. Stock Analysis

    U.S. Bancorp to Pay $6M to Settle Trustee Role Related Suit - Analyst Blog

  5. Stock Analysis

    Wells Fargo Brokerage Units Fined by FINRA for AML Failures - Analyst Blog

Trading Center