Intel Corporation (NASDAQ:INTC) Could Gain From Improving Selling Prices
Close on the heels of Intel Corporation (NASDAQ:INTC) reporting results beat for the fourth quarter, analyst Zino of S&P Capital IQ maintained his Buy rating on the shares. He also kept his one-year price target of $41 on the stock, on below-peer PE of 13.9X his EPS estimate of 2018.( )
The analyst thinks that his price objective reflected high PC exposure. He has adjusted his EPS estimate from $2.82 to $2.80 for the year 2017 and from $3.02 to $2.94 for the year 2018. The move came on the back of the company reporting earnings of 79 cents a share, which is four cents above the Capital IQ consensus. He pointed out that sales, which grew 9.8 percent, was better than estimated.
In a research note to clients, Zino viewed, “We think PC declines are moderating and see healthy, but decelerating, Data Center growth (high single digit). We are encouraged by improving selling prices in these segments. We like growth prospects within the Internet of Things (+16%) and note favorable memory trends.”
Intel shares are trading up 1.90 percent at last check.