Computer processor maker Intel Corporation(
) on Tuesday caught a downgrade from analysts at First Global, who
cited concerns from competition and rising inventory levels.
The firm cut its rating on INTC from "Outperform" to "Market
Perform," noting "INTC's reported numbers for Q3 FY10 came in line
with our estimates, though management provided an unexciting and
slightly lower than expected guidance for Q4 CY10…There has been
growing threat from tablets and smartphones and competition in the
consumer business is expected to heat up further in the holiday
season…We expect INTC's start-up costs, as well as costs associated
with taking some of its factories offline, to put pressure on the
company's margins…There is increasing concern over a possible
Continuing, an analyst said "Moreover, the concerns over
softening macroeconomic conditions leading to a further slow down
in demand and weakening of consumer spending have intensified."
Intel shares fell 18 cents, or -0.9%, in premarket trading
The Bottom Line
We had removed shares of INTC from our recommended list back on
June 8, 2010, when the stock was trading at $20.31. The company has
a 3.28% dividend yield, based on last night's closing stock price
of $19.19. The stock has technical support in the $17 price area.
If the shares can firm up, we see overhead resistance around the
$21-$22 price levels. We would remain on the sidelines for now.
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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