FBR Capital Markets Raises PT on Intel to $29

FBR Capital Markets has published a research report on Intel (NASDAQ: INTC) and has raised the price target from $27.50 to $29 after the company reported 4Q earnings.

In the report, FBR Capital Markets writes, "Thursday, Intel reported 4Q11 financial results that beat recently lowered guidance and guided 1Q12 revenues to seasonally decline to $12.8B +/– $500M (down 4%–11% QOQ), in line with the Street. Management said hard disk drive impacts from the Thai flood are hitting PC production rates and inventory levels but are not affecting end customer shipments. For 2012, Intel guided revenues to grow by "high single digits" toward $58B–$59B, much better than the Street's $55.1B as management assumes the global supply chain refills PC-related inventory following the Thai floods. Assuming the midpoint of 1Q12 revenue guidance, revenues must grow 9% QOQ in 2Q12, 3Q12, and 4Q12 to hit 7% annual revenue growth—a difficult target, given flattish YOY PC shipments in 4Q11. We maintain our Market Perform rating, cut our 2012 pro forma EPS estimate from $2.50 to $2.40, our 2013 estimate from $2.80 to $2.70, and raise our price target from $27.50 to $29 as we apply a slightly higher 11x target P/E multiple (2012), still low but fair given current big-tech valuations."

FBR Capital Markets maintains its Market Perform rating on Intel, which closed yesterday at $25.63.