Intel: Raymond James Downgrades; Cites Flood Issues
Raymond James analyst Hans Mosesmann this morning reduced his rating on Intel to Market Perform from Outperform, withdrawing his previous $33 target price. He writes that the strong performance of the stock relative to other PC related names in recent weeks “will keep the stock range bound over the next few quarters.”
The analyst also writes in a research note that he suspects the recent Thai floods “will limit any unit driven upside until supply issues are resolved,” which will take at least until the 2012 second quarter. “Although we believe 2012 will be a solid year for Intel in its core processor markets our view that the shares should trade in the mid-to-low teens in terms of an out-year P/E multiple now appears a stretch given the Street’s demand for a more meaningful traction in smartphone/tablets. This may cause value investors to look at other large cap tech names, despite Intel’s strong product cycle, lean channel inventory and dividend yield of 3.6%.”
INTC this morning is down 18 cents, or 0.8%, to $23.39.