Auriga Has $26 Target On Intel

Auriga has a $26 price target and a Buy rating on Intel Corporation

. In a note sent to investors Auriga writes, "We maintain our Buy rating on Intel (

) and raise our price target to $26 from $22, partly because we see less risk to numbers here than elsewhere (we raise our CY11 EPS estimate to just under consensus), and partly to recognize the multiple expansion that is now evident throughout the semiconductor space. Investors seem to be focused on a potential slowdown on the client PC side due to cannibalization from tablets, but our work suggests that this ignores the increased data center requirements that such relatively under-powered mobile devices will drive over the next several years. Our sense is that we are less than halfway through a multi-year server cycle in which INTC has a distinct advantage over its main competitor, Advanced Micro Devices (AMD, Sell)." Shares of INTC lost 1 cent yesterday to close at $21.81.