As Intel (NASDAQ:INTC) approaches its earnings report next week, analysts are taking stock of their stake in the semiconductor. Piper Jaffray downgraded the stock to neutral from overweight earlier this week, setting a 12-month price target of $21.50. This doesn’t represent much upside for the shares.
The stock was virtually flat in 2010, drastically underperforming the tech sector and the broad market, but earnings have been largely positive. According to Briefing.com, INTC has surprised to the upside in seven of the past eight reporting periods. Analysts are expecting per-share results of 53 cents for the January 13 post-market report; this would be a 33% improvement from year-ago figures.
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UBS downgraded Intel (NASDAQ:INTC) to neutral from buy yesterday, lowering its 12-month price target to $19.50 from $28. UBS officials based this move on recent meetings with PC supply chain companies in Asia. They believe PC demand is weak in the near-term, which could negatively impact demand for processors. Intel’s customers are expecting to see a price reduction of 15% or more for mainstream processors.
Green on the monitor screen is starting to appear: Apple, Google and Intel are all positive pushing the NDX index into the green.
