Intel’s Estimates, Target Lowered at Needham & Co. (INTC)

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Computer processor maker Intel Corporation ( INTC ) on Monday saw its earnings estimates and price target cut by analysts at Needham & Co.

The firm reiterated its "Buy" rating on INTC, but cut its price target on the stock from $25 to $23. That new target represents an expected 18% upside to the stock's Friday closing price of $19.42.

A Needham analyst commented, "Consistent with our revised semiconductor industry outlook discussed in our industry report entitled 'Anticipating A Two Quarter Slowdown,' we are cutting our forward estimates on Intel to reflect weaker than expected demand in the computing and consumer end markets and inventory reduction actions by the supply chain into year-end. With a vast majority of its revenue derived from consumer PCs, we believe the company will experience reduced order rates and lower sales through 1Q11."

Intel shares were mostly flat in premarket trading Monday.

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 3.24% dividend yield, based on Friday's closing stock price of $19.42. The stock has technical support in the $16-$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.

Intel Corporation ( INTC ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: INTC

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