FBR Capital Markets Reiterates Market Perform Rating, $23 PT on Intel Corporation

In a report published Wednesday, FBR Capital Markets reiterated its Market Perform rating and $23.00 price target on Intel Corporation INTC. FBR Capital Markets noted, “We rate INTC Market Perform with a $23 price target. Intel has sustainable advantages in manufacturing, APU roadmaps, process leadership, technology leadership (high-K, 3D transistors), and scale. However, tablets and smartphones are cannibalizing its core business, and the firm has some WoA and ARM microserver risks. Further, we do not see Intel making meaningful progress to ramp its handset solutions or press its manufacturing advantages, a negative. Thus, we highlight QCOM or BRCM as preferred large-cap chip picks with more tailwinds in the shift to smartphones. We maintain our Market Perform rating and $23 price target, a 10x target P/E multiple (2013), low but fair given big-tech valuations.” Intel Corporation closed on Tuesday at $21.88.