Raymond James analyst Hans Mosesmann this morning reduced his rating on Intel to Market Perform from Outperform, withdrawing his previous $33 target price. He writes that the strong performance of the stock relative to other PC related names in recent weeks �will keep the stock range bound over the next few quarters.�
The analyst also writes in a research note that he suspects the recent Thai floods �will limit any unit driven upside until supply issues are resolved,� which will take at least until the 2012 second quarter. �Although we believe 2012 will be a solid year for Intel in its core processor markets our view that the shares should trade in the mid-to-low teens in terms of an out-year P/E multiple now appears a stretch given the Street�s demand for a more meaningful traction in smartphone/tablets. This may cause value investors to look at other large cap tech names, despite Intel�s strong product cycle, lean channel inventory and dividend yield of 3.6%.�
INTC this morning is down 18 cents, or 0.8%, to $23.39.
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