Chips: ThinkEquity Ups NVDA To Buy; Cuts INTC To Hold

ThinkEquity chip analyst Krishna Shankar today took over coverage of both Intel (INTC) and Nvidia (NVDA), and flipped the firm’s ratings on the two stocks, downgrading INTC and upgrading NVDA.

  • Intel: Shankar cuts his rating to Hold from Buy, though he ups his 2010 EPS forecast to $1.88 from $1.70, and lifts 2011 to $2, from $1.90. He contends the sock is fairly valued at 12x his 2011 estimate. Shakar says the stock is a core holding for investors seeking exposure to a strengthening global consumer and IT spending environment. In fact, while he is downgrading the shares, to read the report you would think he was raising his rating.
  • Nvidia: The analyst goes to Buy from Hold, while trimming his EPS forecast for the January 2011 fiscal year to 98 cents from 99 cents; for 2012 he goes to $1.15, from $1.21. He writes that the company is “well-positioned as a secular play on high growth in visual computing, 3D graphics and HD video, and low-power consumer mobile Internet devices.” He puts fair value of the stock at $23.

In today’s trading, both stocks are lower as the Nasdaq extends yesterday’s slide:

  • INTC is down 10 cents, at $22.30.
  • NVDA is down 3 cents, at $14.72.

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