UPDATE: Sterne Agee Cuts PT to $18 on Intel on PC Build Checks

Sterne Agee reiterated its Neutral rating on Intel

while reducing its price target from $19 to $18. Sterne Agee noted, "While there is optimism that MarQ PC sales could stabilize, our checks indicate a MarQ PC build closer to being seasonally down 7-10% q/q versus current consensus of down 3% q/q. Given very high INTC inventories and seasonal MarQ PC builds, we PC inventories will continue to be an overhang. We believe while tablets are a long-term structural challenge to PCs, the high price tag on the Surface-Pro and any OEM Win8 tablets production only in JunQ limit upside. Lowering estimates & PT to $18." Intel closed at $19.57 on Friday.