Intel "buy," target price raised - update

16.04.08 - Wedbush Morgan Securities

NEW YORK, April 16 (newratings.com) - Analysts at Wedbush Morgan reiterate their "buy" rating on Intel Corporation (INTC), while reducing their estimates for the company. The target price has been raised from $25 to $26.

In a research note published this morning, the analysts mention that the company has posted robust 1Q results, with revenues and GAAP EPS ahead of the estimates. Intel has issued healthy guidance for 2Q, with the mid-point of the revenue guidance at $9.3 billion, above the estimates and the consensus. Although Intel is likely to witness rising competition from Advance Micro Devices, the company is competitively well positioned during 2008, the analysts say. The EPS estimates for 2008 and 2009 have been reduced from $1.29 to $1.22 and from $1.49 to $1.47, respectively, partly reflecting increased restructuring and R&D expenses.