JP Morgan Reiterates Neutral, $25 PT on Intel

JP Morgan maintains its Neutral rating and $25 price target on Intel (NASDAQ: INTC) as lack of leverage and risk to guidance offsets solid results reported by the company.

JP Morgan says, "Intel reported 4Q11 EPS of $0.64, $0.02 above our $0.62 estimate and $0.03 above Consensus of $0.61 due to higher revenue. ...Intel provided strong 2012 guidance, with gross margins expected to increase YoY from 62.5% in 2011 to 64.0% in 2012, along with high single digit YoY revenue growth. We view Intel's 2012 guidance as somewhat risky and aggressive as the company expects QoQ revenue growth in 2H12 to be roughly 50% above normal seasonality."

INTC closed at $25.63 per share on Thursday.