July 09, 2012 at 14:37 PM EDT
Intel: Stifel, Williams Cut Estimates on PC, Ultrabook, Win8 Risks
As I mentioned earlier today, there were a number of reports from Street analysts concerning the chip sector, including some downbeat perspectives on Intel ( INTC ). Stifel Nicolaus's Kevin Cassidy reiterated a Buy rating on Intel shares and a $35 price target, while cutting his estimate for Intel for Q3 and for the year to reflect weaker-than-expected PC sales , writing that "We see the combination of continued weak macro-economic conditions, 4Q12 Windows 8 launch and, in our view, high priced Ultrabooks as driving a below seasonal September quarter for the PC industry." Cassidy models PC units rising just 3% in the September quarter versus a prior 8% growth projection. He cut his estimate for Intel's revenue for the full year to $56.17 billion from $57.1 billion, and cut his EPS estimate to $2.41 from $2.50. That is below the consensus for $56.96 billion and $2.48 per share. For Q2 ended in June, he maintains an estimate for $13.6 billion and 53 cents is in line with consensus. But for the September quarter he cut his estimate to $14.39 billion and 63 cents from a prior $14.83 billion and 67 cents. That is below the consensus $14.78 billion and 66 cents. Nevertheless, Cassidy still finds value in Intel's "dominant position in both client PCs and servers," and he expects the company to gain share in chips for mobile computing next year. On a less positive note, Williams Financial Group's Cody Acree reiterates a Hold rating on Intel shares, and cut his Q2 estimate to $13.55 billion in sales and 52 cents a share from a prior $13.68 billion and 54 cents. For the full year, he cut his estimate to $56.39 billion and $2.47 from $57.3 billion and $2.57. Acree thinks Intel will revise downward its year outlook when it reports Q2 results on July 17th, given a series of weak data points about the PC market:
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