Intel Corp. (INTC) - Bear of the Day

By Zacks.com,  August 01, 2012, 01:00:01 AM EDT

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.
 
INTEL CORP (INTC): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: INTC



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