Thursday, January 13, 2011

Intel (NASDAQ:INTC) Q4 Weak, Q1 Has Tailwinds says Wedbush

Acknowledging that the fourth quarter of Intel (NASDAQ:INTC) will be a miss for them, and it is already priced into the share price of the stock, Wedbush adds that they see tailwinds for the first quarter.

Wedbush noted, "We remain constructive on shares ahead of 4Q earnings as we believe a modest 4Q miss is already priced into shares. However, we see potential for strong 1Q revenue tailwinds given (1) lean inventories, (2) an aggressive SNB ramp, and (3) robust China demand. Further, we think the 1H11 GM decline could be better than feared supported by better mix, higher utilizations, higher ASPs, and lower costs. We expect minimal impact to the PC market by tablets.

"Estimate changes – 4Q revenues / EPS go from $11.44n / $0.53 to $11.37bn / $0.55 (Street $11.37bn / $0.53); 1Q from $10.90bn / $0.44 to $10.80bn / $0.44 (Street $10.74bn / $0.44); and 2011 from $45.03bn / $1.91 to $44.67bn / $1.91."

Wedbush reiterates an "Outperform" rating on Intel, which was trading at $21.22, down $0.08, or 0.39 percent, as of 1:11 PM EST. Wedbush has a price target of $24 on Intel.

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