Seeking Alpha

Intel jumps thanks to Citi, Drexel Hamilton upgrades

  • Citi and Drexel Hamilton have both upgraded Intel (INTC +3%) to Buy. Citi's PT has been upped to $28, and DH's to $30.
  • Citi's Glen Yeung says he's encouraged by stabilizing corporate PC demand (noted by IDC/Gartner in their Q3 data, and also mentioned by Intel during its investor day), and notes Oct. retail point-of-sale data showed growth for the first time in nine months.
  • Yeung also calls Intel's forecast for a 5% 2014 drop in PC units "sufficiently conservative." IDC currently expects PC shipments to drop 3.8% in 2014 (those estimates have a habit of changing frequently).
  • Intel shares were clocked recently due to investor disappointment with the chip giant's investor day guidance. They currently trade at 12x 2014E EPS after backing out net cash/investments.
Comments (2)
  • thesahibzada
    , contributor
    Comments (374) | Send Message
     
    I read another commentary on this news about half an hour ago and it said since guidance is super conservative and just about flat that it should be extremely easy to have a good next quarter come time of earnings day. And actually this is common sense when you think about it..... flat guidance just means more room to blow the show away even if its a tad higher than being in line with "flat" hahaha

     

    clever clever intel..... we are up now by 3% and DH thinks the stock is worth 28 ~ 30 so lets see how much more of a boost this gives the stock today.

     

    I feel sorry for the people who closed out their positions just last week and the weeks before that around the investor day hahahaha
    6 Dec 2013, 10:21 AM Reply Like
  • TBoone
    , contributor
    Comments (10) | Send Message
     
    don't buy this hype. think about it. PCs are slumping, mobile, where INTC has no synergy, is flying.

     

    For Intel to grow it will have to make huge gains in the mobile market. So where is it going to do that? With Microsoft and Nokia phone? Google and Apple are certainly not going to sign-off on any Intel effort to penetrate the Mobile market.

     

    This is going to be a tough road to hoe, and will cost a fortune to make any headway. Do not expect any significant growth out of Intel for at least a year or more (Reminder - that is exactly what they said on their conference call), and that growth is extremely iffy.

     

    I'll take another look in 6 mo.s but until then I'm just watching and I actually expect a significant
    6 Dec 2013, 09:17 PM Reply Like
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