RESEARCH ALERT - Intel (NASDAQ:INTC) estimates raised
Reuters, Friday, October 11, 1996 at 15:00
-- Morgan Stanley analyst John Marren has significantly
boosted his estimates on Intel Corp for the quarter ended in
September and for each of the upcoming quarters through the end
of fiscal 1997, said Gary Wolk, Marren's associate.
-- In remarks to the brokerage's sales force, Marren said
he had raised his estimate for Intel's third quarter to $1.31
per share from $1.19. The company is to release third quarter
earnings on Monday.
-- Marren based his more aggressive numbers on recent
discussions with industry sources, his office said.
-- Wolk said Marren's sources had confirmed that Intel unit
volumes were very strong and that the pricing strategy at the
world's leading microproccesor will have a positive effect on
the company's earnings over the next two quarters.
-- In his comments, Marren said Intel's strategy of no
further price cuts after August will dramatically improve
average product selling prices, leading to an expansion of its
gross margins.
-- The analyst raised his estimates to $1.49 per share from
$1.27 for the fourth quarter of 1996.
-- He raised his estimates for the first quarter of 1997 to
$1.52, for second quarter to $1.55 per share, for third quarter
to $1.62 and for fourth quarter to $1.81. Prior comparsions for
the year were not available.
-- For the entire fiscal year, Marren raised his estimate
to $6.50 per share from $5.80 a share, putting him at the high
end of the street estimates, the consensus of which stood at
$5.91 per share.
-- In his comments, Marren said that, "Every two years
Intel masterminds a powerful new product cycle that
dramatically changes the PC platform and typically results in a
year of strong PC unit growth and stunning financial results.
We believe that 1997 is such a year."
-- He boosted his 12-month target price to 130.
-- Eric Auchard, New York Newsdesk, 212-859-1736
Good luck to all and go Intel! Jeff in Little Rock |
