Nomura Securities analysts trimmed the price target on microchip maker Intel Corporation (INTC) on Friday ahead of the company’s launch of its Haswell processors.
The analysts maintain a “Reduce” rating on INTC and see shares reaching $18, down from $19. This new valuation suggests a 15% downside to Thursday’s closing price of $21.14.
“January through March are seasonally the weakest months of the year for PCs. This year is no different. PC demand is down 15% y-o-y. But Intel likely recognizes this pattern and into earnings we believe will stay cautiously optimistic on 2013; highlighting a greater mix of touch-enabled ultrabooks, lower price points ($499), and the launch of Haswell processors,” said Nomura analyst Romit Shah.
“The upcoming Haswell processors reduce power consumption to 7-10W, but Intel will likely need one more node transition (14nm Broadwell) to bring Core to tablets,” Shah added.
Intel shares were down 23 cents, or -1.06%, during pre-market trading on Friday. The stock is up +2.52% year-to-date.
The Bottom Line
Shares of Intel (INTC) have a dividend yield of 4.26% based on last night’s closing price of $21.14 and the company’s annualized dividend payout of 90 cents per share.
Intel Corporation (INTC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.