Credit Suisse Reiterates Outperform Rating, $35 PT on Intel

In a report published Wednesday, Credit Suisse Group reiterated its Outperform rating and $35.00 price target on Intel Corporation

. Credit Suisse noted, “INTC's C2Q report/C3Q guide was better than/in-line with investor expectations. While macro headwinds persist and are forcing INTC to lower 2012 rev guidance from +7-9% y/y to +3-5%, management continues to demonstrate significant flexibility around the operating model - lowering 2012 opex by $100m, maintaining full year GM of 64%, controlling capex/depreciation in-line/below the low end of the range - resulting in 2012 EPS declining by only 3 cents to $2.45. Macro risks still persist, but no more so for INTC than the rest of Semis/the stock market. Sub-seasonal guide for C3Q, only seasonal for C4Q - despite lean inventory and Win8 - might actually mean INTC stock is less exposed, especially relative to continued negative investor sentiment. We disagree with but at least understand the structural bear call on INTC. The tactical call of disappointing revenue coupled with uncontrollable spending driving major EPS revisions is losing steam.” Intel Corporation closed on Tuesday at $25.38.