Canaccord Maintains Hold, $24 Target on Intel

Canaccord reiterates its Hold rating and $24 target on Intel Corporation

as HDD shortage drives higher CPU inventories. Canaccord says, “Recent checks indicate Intel's customers are experiencing CPU inventory growth in Q4 as a result of HDD shortages. Tier-2 customer inventories appear to be growing the most and now stand around six to seven weeks, versus their normal four weeks. Tier-1 customers are also seeing inventories grow to about 1.5 weeks above normal. In our view, this is the direct result of HDD shortages. We believe shortages could constrain PC production by >20% in Q4 and are likely to worsen in Q1, constraining production by as much as 40%.” INTC closed at 23.58 per share on Tuesday.