Intel "neutral," target price reduced

16.01.08 - Robert W. Baird

NEW YORK, January 16 (newratings.com) - Analysts at Robert W Baird reiterate their "neutral" rating on Intel Corporation (INTC), while reducing their estimates for the company. The target price has been reduced from $30 to $23.

In a research note published this morning, the analysts mention that the company has reported its 4Q07 GAAP EPS marginally short of the estimates and the consensus. Intel has issued its revenue and gross margin guidance for F1Q at $9.4-$10.0 billion and 54%-58%, respectively, the mid-points of which are significantly short of the estimates and the consensus. The disappointing guidance for the current quarter reflects deteriorating business trends, the analysts say. The EPS estimates for FY08 and FY09 have been reduced from $1.60 to $1.30 and from $1.70 to $1.46, respectively.