Nomura Cuts Price Target on Intel; Maintains “Reduce” Rating (INTC)

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 DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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