UPDATE - Nomura Securities Downgrades Intel (INTC) to Reduce; Lowering Estimates

UPDATE - Nomura Securities downgrades Intel (Nasdaq: INTC) from Neutral to Reduce. PT lowered from $23 to $18.

Nomura analyst, Romit Shah, said, "Intel outperformed the S&P 500 by 16% and the SOX by 23% over the past three months based on expectations for strong Q2 results. While revenue and EPS were above our estimates, we believe earnings quality was weak. While management backed off its earlier forecast for double-digit PC growth in 2011, we believe the outlook for seasonal growth (+7%) in the Sept quarter is not conservative. We are lowering our estimates from $13.6bn/$0.61 to $13.5bn/$0.57 in Q3 and from $54.8bn/$2.25 to $53.5bn/$2.10 in CY12. Our price target is based on 9x CY12 EPS. This multiple is inline with HP (NYSE: HPQ) at 7x, Dell (Nasdaq: DELL) at 9x, and Microsoft (Nasdaq: MSFT) at 10x."

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