Piper Jaffray Reiterates Neutral Rating, $19 PT on Intel Corporation
In a report published Monday, Piper Jaffray & Co. reiterated its Neutral rating and $19.00 price target on Intel Corporation (NASDAQ: INTC).
Piper Jaffray noted, “Intel's CEO of eight years is leaving the company amidst what we see as difficult challenges for the company in the post-PC era. While Intel's manufacturing capability is currently second to none, Samsung is catching up. Increasingly, new designs favor less expensive process technology, not high performance transistors used in PC CPUs. In the mobile era, customers such as Google, Facebook and Apple are designing their own mobile processors and server processors. As the PC market has stagnated, Intel has tried to pivot to mobile and increasingly to foundry. However, Intel has had very limited success in mobile and Intel's prices for foundry wafers are 3x that of TSMC's. The new CEO will also have numerous internal conflicts to resolve while moving the company forward. Although Otellini's departure is billed as a retirement, in many cases it is not a positive sign when a CEO leaves. Maintain Neutral.”
Intel Corporation closed on Friday at $20.19.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.