Bottom Line. INTC provided upside with upside - balancing strong results in 4Q09 with conservative enough guidance for 1Q10 and 2010 to suggest continued upward revisions. Stock works as market revalues from cyclical back to growth. Peak EPS of $1.58 in 2000, should finally be eclipsed - cyclical (Corporate Refresh) and structural drivers (PC Penetration) combined with product cycles (Nehalem) and manufacturing efficiency (high and sustainable margins) to drive over $2.00 of EPS thru this cycle. Our new PT is $30.
Intel delivers big and some headlines say now there's growth worry. So if they miss, it's better for growth? All this is, is just the killing of options. Intel has blown away expectations 3 times in a row now in a way that nobody else has done. Intel stock is definitely cheap today. And Doug Freedman gave $29 target price also. Intel should be approaching closer to $2 EPS in possibly 2010, but definitely 2011. At $30 PT, that's only 15 forward PE.