Intel Analysts See Higher Demand For Business-Grade PCs
Intel (NASDAQ: INTC) shares bounced 6.7 percent Friday following the company's boost to its outlook.
Short-term results will benefit from higher-than-expected demand for chips used by business-grade personal computers, the company said, adding it now expects "some revenue growth" for 2014. Previously, it expected flat revenue for the period.
In a research note, Baird analyst Blayne Curtis said chip demand generally may also gain from the WindowsXP upgrade cycle, and "potentially early back-to-school shopping." Baird is Neutral on the shares, but raised its price target from $24 to $26.
Topeka Capital analyst Suji DeSilva maintained a Buy rating and boosted his target price from $30 to 34.
DeSilva said Intel's preannouncement of a one-point gain in its gross margin, to 64 percent, indicates strength in the company's product line.
WIth PC demand "stabilizing," DeSilvia expects Intel will recover market share in the consumer PC market in the second half of 2014, while a "a multi-quarter upgrade" of business PCs will help fuel performance.
Intel's gain Friday single-handedly boosted the weighted Dow Jones Industrial Index by about 12 points for the day.
At market close, Intel changed hands at $29.86, up 6.8 percent.
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