Intel upgraded to "outperform"

16.08.07 - Credit Suisse

NEW YORK, August 16 (newratings.com) - Analyst J Pitzer of Credit Suisse upgrades Intel Corporation (INTC) from "underperform" to "outperform," while raising his estimates for the company. The target price has been raised from $22.50 to $35.

In a research note published this morning, the analyst mentions that the company?s utilization, inventory and unit growth are improving. Intel?s margins are expected to continue to expand, and the competitive trends in the MPU sector are likely to improve going forward, the analyst says. The company?s ASPs might be boosted by the recommencement of the corporate PC upgrade cycle and the robust demand for Virtualization, Credit Suisse adds. The EPS estimates for 2007 and 2008 have been raised from $1.04 to $1.05 and from $1.24 to $1.40, respectively.