Analyst Actions: Intel, Advanced Micro Devices, Morgan Stanley, Coca-Cola Enterprises
By David A. Gaffen
Staff Reporter
12/8/00 9:55 AM ET
As is the practice, the analysts are out in full force this morning, the day after Intel (INTC:Nasdaq - news) announced the fourth quarter wasn't going to end up the way it had hoped. After warning that revenue would fall short of expectations, Intel's gotten the axe this morning, with multiple downgrades and reductions in estimates. The company said yesterday fourth-quarter revenues would fall short of expectations, the second quarter in the row it announced it was falling short of expectations.
Lehman Brothers' Dan Niles, in a comment this morning, said any rally in the stock should be sold due to ongoing concerns about slowed demand. Niles cut 2001 earnings estimates to $1.40 from $1.65, but cautioned, "this could be optimistic." Niles maintained an outperform rating.
Chase Hambrecht & Quist lowered its rating to market perform from buy and dropped its price target to $45 from $50. ABN Amro downgraded the company to a hold rating from add, on expectations of weak demand in the first half of 2001. Credit Suisse First Boston cut its 2001 earnings-per-share estimates to $1.45 from $1.66, and fourth-quarter estimates to 37 cents a share from 41 cents a share, but kept its buy rating. Goldman Sachs cut fourth quarter estimates to 38 cents a share from 42 cents, and lowered 2001 estimates to $1.55 from $1.80.
Robertson Stephens dropped 2000 and 2001 earnings estimates to $1.63 and $1.55 from $1.66 and $1.70, but left alone its long-term attractive rating. UBS Warburg dropped its price target to $40 from $52, and lowered 2000 and 2001 estimates to $1.64 and $1.54 from $1.68 and $1.67, but didn't change its buy rating. Deutsche Bank Alex. Brown dropped 2000 estimates to $1.64 from $1.73, but maintained its underperform rating.
Going against the grain, CIBC World Markets upgraded the company to a buy from hold, setting a price target of $42.
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Chase H&Q, in response to yesterday's Intel warning, not only dropped its rating on Intel this morning, but also downgraded Advanced Micro Devices (AMD:NYSE - news) to market perform from buy this morning. The company is another chipmaker that supplies PC maker Intel.
"We believe the current depressed PC demand market environment will definitely affect Intel's main competitor, AMD," wrote Sudeep Balain, Chase's PC analyst. The price target was also lowered to $30 from $35 for AMD, as Balain expects the stock to remain under pressure. Balain also issued Chase's Intel downgrade to market perform from buy this morning. |
