Wedbush Upgrades Intel To Outperform Following Q1 Results

In a report published Wednesday, Wedbush analysts upgraded Intel Corporation INTC from Neutral to Outperform, while raising the price target from $34 to $37. The analysts believe that the company's revised 2015 guidance is easily achievable. According to Wedbush, replenishment of PC inventory supply chain for Windows 10, along with continued control on spending, robust Y/Y growth in the Data Center, NAND and IoT businesses and an $800 million decrease in mobile loses, would help Intel achieve its outlook for the year. "While INTC guided PC shipments to be down mid single digits Y/Y, inventory in the supply chain is being significantly drawn down to prepare for Windows 10 launch. We believe we are at the trough in PCs and expect strong Q3 Q/Q growth as the supply chain replenishes for the launch of Windows 10," the analysts explained. The company has undertaken measures to cut both capex and adapting to the rapidly chaning PC demand trends. Wedbush expects the company to "continue to closely manage spending to drive shareholder value." On the whole, Intel is expected to witness double-digit growth in all its businesses, outside of PCs.