(INTC) Intel Corporation – Bear of the Day

Intel Corp. (INTC) beat the Zacks Consensus by $0.04 in the second quarter, driven by strength in server and software businesses and supported by a moderate PC business. Guidance disappointed, however, due to lower builds at distributors.

Intel also remains a laggard in the mobile segment, and although its situation could improve by virtue of its Ultrabook and agreement with Google, Intel has yet to prove itself here. In the meantime, competition from ARM-based devices continues to intensify.

Therefore, given the PC market weakness and the fact that mobile devices will continue to eat into its client business, we downgrade Intel shares from Neutral to Underperform. We are setting a target price of $24.00, which is 10.0X our earnings expectations for 2012.

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.

Comments

Powered by Facebook Comments


Similar Posts: | | Semiconductor - Broad Line | Technology

RSS feeds: INTC | Intel Corporation | Semiconductor - Broad Line | Technology |

Other Posts by | RSS Feed for this author