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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