Intel Analysts See Higher Demand For Business-Grade PCs

Intel Corp.

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 to $26, from $24 Topeka Capital analyst Suji De Silva maintained a Buy rating and boosted his target price to $34, from $30 a share. De Silva 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," De Silvia 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. Near the market close, Intel was changing hands at $29.83, up 6.71 percent. -