Credit Suisse Reacts To Negative C1Q Preannouncement From Intel

In a report published Friday, Credit Suisse analyst John W. Pitzer reiterated an Outperform rating and $40.00 price target on

. In the report, Credit Suisse noted, "Pre-open Thursday, INTC neg. pre-announced C1Q, lowering the mid-point of rev to $12.8bn from $13.7bn and maintaining GM/OpEx – driving us to reduce C1Q EPS to $0.40 from $0.48. The company also withdrew full year guide until C1Q is reported. We are lowering our CY15 EPS to $2.10 from $2.40 – based on -0.8% y/y rev growth, 62.3% GM and $20.0bn OpEx versus our prior model of +5.5% y/y, 62.5% and $20.0bn, respectively. We are lowering our CY16 EPS to $2.49 from $2.75. The majority of the rev miss was PCCG (~$900m) equating to 8-12m units, with most of the PCCG miss associated with DT weakness in Europe (~10% of PCCG) due to currency and macro." Intel closed on Thursday at $30.80.