INTC: Raise EPS Estimates, Price Target Slightly 2H (In-line, High Risk)
Mkt Cap: $116,923.0 mil.
January 13, 2003 SUMMARY
* We are raising our Q4 outlook from EPS of $0.14 on
SEMICONDUCTORS revenues of $6.95 billion (+7%) to $0.15 on $7.1
Jonathan Joseph, CFA billion (+9%), slightly above guidance, and 2003 from
$0.60 to $0.65; consensus EPS are $0.14 and $0.63,
respectively.
Ramesh Misra, Ph.D * Industry data and our own channel surveys suggest
our previous assumption of flat Q3/Q4 pricing may have
been conservative, and we are raising our Q4 price
estimate from $150 to $155 (+3%); '03 from $146 to
$153 (flat). We continue to estimate 7% qoq unit
growth in Q4 and 9% for this year.
* Our surveys suggest both Europe and Asia were
stronger, while the U.S. was in-line. We believe mix
may have favored mobiles and servers, helping prices.
We continue to look for Q1 revenue guidance of
seasonally down 5%, or so.
* We are raising our upside price target on INTC from
$18 to $20 but retain our 2H rating. We maintain a
Marketweight rating on the Semiconductor industry. |
