October 10, 2008, 10:43 am
Intel: Think Thinks The Stock Is A Sell
Posted by Eric Savitz
Intel (INTC) shares may be down 42% for the year, and 36% since mid-August, but ThinkPanmure’s Vijay Rakesh today contends it still isn’t too late to get out. In fact, he downgraded the shares this morning to Sell from Buy, halving his price target to $12 from $24.
“We believe Intel is heading into a perfect storm in 2009, with some of the prior growth drivers fading and multiple macro and company-specific headwinds, which imply a slowdown in growth and multiple contraction, well below current consensus Street estimates,” he writes. Rakesh chopped his 2009 EPS estimate to $1.01 from $1.35, which would mean a down year from his estimate for 2008 of $1.21.
Rakesh thinks PC growth could be flat in 2009, with slowing growth in the notebook segments, with loss of share to less expensive netbooks. While Intel sells the Atom processor into the rapidly growing netbook segment, he notes that Atom has lower pricing and profits per chip than notebook processors.
Intel today is off 46 cents, or 3%, to $15.14.
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