Computer processor maker Intel Corporation (
) 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
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 (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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