Ted
thanks, I just checked for it. I do not see anything that earth shuttering
Regards
-Albert
01:29pm EDT 31-Aug-01 Salomon Smith Barney (Jonathan Joseph +1-415-951-1887)
INTC: P4 Demand Picking Up
SALOMON SMITH BARNEY
Intel Corporation (INTC)
INTC: P4 Demand Picking Up 1M (Buy, Medium Risk)
Mkt Cap: $186,898.6 mil.
August 31, 2001 SUMMARY
* Our own market surveys suggest P4 demand may be
SEMICONDUCTORS running ahead of our earlier expectation and the
Jonathan Joseph company may be experiencing some spot shortages in
+1-415-951-1887 certain configurations, particularly at the two ends
jonathan.joseph@ssmb.com of the speed scale. Intel is seeking to move the
Ramesh Misra market upscale, which creates a tighter market at
+1-415-951-1883 the low end, while we hear the P4-2GHz product is
"hot."
* From all we have heard from numerous sources, the
P4 production ramp is going smoothly for the
company, and probably slightly ahead of plan. This
usually means the "bin splits" are moving upscale.
This allows the company to "end of life" product at
the low-end (P4-1.3,1.4, and later this year
1.5GHz), where the White Box community tends to
play, and move the "sweet spot" toward their target
of 1.8GHz by yearend.
FUNDAMENTALS
P/E (12/01E) 57.7x
P/E (12/02E) 38.8x
TEV/EBITDA (12/01E) NA
TEV/EBITDA (12/02E) NA
Book Value/Share (12/01E) $5.33
Price/Book Value 5.1x
Dividend/Yield (12/01E) $0.08/0.3%
Revenue (12/01E) $26,218.0 mil.
Proj. Long-Term EPS Growth 25%
ROE (12/01E) 14.7%
Long-Term Debt to Capital(a) 2.4%
INTC is in the S&P 500(R) Index.
(a) Data as of most recent quarter
SHARE DATA . RECOMMENDATION
Price (8/30/01) $27.13 Current Rating 1M
52-Week Range $74.88-$22.63 Prior Rating 1M
Shares Outstanding(a) 6,889.0 mil. Current Target Price $40.00
Convertible No Previous Target Price $40.00
EARNINGS PER SHARE
FY ends 1Q 2Q 3Q 4Q Full Year
12/00A Actual $0.36A $0.50A $0.41A $0.38A $1.66A
12/01E Current $0.16A $0.12A $0.08E $0.11E $0.47E
Previous $0.16A $0.12A $0.08E $0.11E $0.47E
12/02E Current $0.14E $0.16E $0.19E $0.22E $0.70E
Previous $0.14E $0.16E $0.19E $0.22E $0.70E
12/03E Current NA NA NA NA NA
Previous NA NA NA NA NA
First Call Consensus EPS: 12/01E $0.51; 12/02E $0.68; 12/03E NA
SUMMARY (CONTINUED)
* Though market demand could hardly be called robust, a successful and faster
than anticipated transition of the market from PIII to P4, will almost
certainly help lay in a Q3 bottom in the semiconductor sector and contribute
to a natural recovery and re-acceleration going into 2002.
* No change to our estimates at this time, but we are increasingly confident
that the company will be able to circle analysts and investors around the low
end of revenue guidance, a range of $6.2-6.8 billion, when they give their
update on September 6 (Thursday) after the close. We reiterate our 1M (Buy)
rating and $40 price target. |
