Intel (NASDAQ:INTC) dip a buy opportunity-Morgan Stanley
Reuters, Friday, August 22, 1997 at 11:08
NEW YORK, Aug 22 (Reuter) - Morgan Stanley analyst Mark
Edelstone said Intel Corp's sharp decline Friday morning put
the shares close to solid support levels and counselled
purchasing the shares on the weakness.
Edelstone, who initiated coverage on the semiconductor
group for Morgan Stanley today, started coverage of Intel with
an outperform rating and a price target of $120 per share.
"We see very solid support for Intel in the mid- to
high-80's," Edelstone said during a conference call to discuss
his coverage. "We clearly would be a buyer of the stock on the
weakness today."
"I look for the company to meet expectations in Q3 and look
for significant acceleration sequentially in the fourth
quarter," he said.
The comments by Edelstone, who recently joined Morgan
Stanley from Prudential Securities, served as a counterweight
to a downgrade by Merrill Lynch analyst Thomas Kurlak, who cut
his near-term Intel rating to neutral from buy, also today.
Kurlak's downgrade had sparked a steep sell-off that pulled
Intel as low as 91-1/16, before a rapid reversal saw the shares
rebound to as high as 95-3/8, off three points in late morning
activity.
Intel was Nasdaq's second most active issue, with volume of
about 15.7 million shares, trailing only MCI Communications
Corp (NASDAQ:MCIC) at 16.2 million in late morning.
The Philadelphia Stock Exchange's Semiconductor index
(INDEX:$SOX.X) stood at 391, off six points or 1.6 percent, also well
off its session low. |
