Analyst Raises Price Target on Intel (INTC) to $13; Maintains Neutral

Broadpoint.AmTech raises its price target on Intel (Nasdaq: INTC) from $12.50 to $13, but maintains its Neutral rating. The firm cites "worsening order patterns since the November 12th pre-announcement."

The firm feels that PC's remain one of the weaker end markets in this economy "as OEMs work down their inventories to target levels held at the end of the year." Broadpoint.AmTech notes that Intel's average selling prices are holding steady as most of its "current orders were booked in the late summer environment of commodity price increases."

AmTech believes Intel's inventory levels will correct over the next two or more quarters, given that the company "has more influence on OEM's to take inventory". The firm moves its Q4 sales estimate from down 11.5% to down 19% and its Q1 estimate from down 12% to down 11%. For adjusted-gross margins, AmTech moves its FY09 estimate from 49.6% to 51.2%, but lowered its estimate for FY10 from 55.5% to 53.9%.

With shares of Intel trading down 1.35% to $14.55 today, the firm's new price target represents a potential price decline of about 10.6% from current levels.

Intel Corporation engages in making, marketing, and selling integrated circuits for computing and communications industries worldwide.

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