UPDATE: Stifel Nicolaus Increases PT to $35 on Intel

Stifel Nicolaus raises its price target from $34 to $35 on Buy-rated Intel INTC following a solid beat and above-seasonal outlook. Stifel Nicolaus says, "In our view, Intel is executing to both its near term and long term strategy. The near term gross margin pressure due to the 22nm process ramp is slight disappointment but as in past production ramps, the lower costs drive gross margins higher in following quarters. We expect Intel's new product ramps in both client PC and servers to drive above seasonal revenue growth. Meanwhile, we look for its handheld products to continue to gain traction." INTC closed at $28.47 on Tuesday.