News Alert from Reuters via Quote.com
Topic: Intel Corp
Quote.com News Item #2026357
Headline: RESEARCH ALERT- Hambrecht bullish on Intel (NASDAQ:INTC)
======================================================================
-- Responding to concerns raised by a handful of other
brokerages, Hambrecht & Quist analyst Rob Chaplinsky reiterated
his buy rating on Intel Corp, saying its prospects for earnings
growth and multiple expansion remain strong.
-- Summarizing comments he made in a published note,
Chaplinsky said plenty of near-term catalysts remain for the
stock, and that he is expecting "perhaps even some upside in
the quarter," referring to the first quarter ending in March.
-- The analyst said Intel's earnings risk is the lowest
and competition is the weakest in the company's history. The
"business fundamentals (are) still very strong," he said.
-- In his published comment, Chaplinsky said that "Intel's
earnings risk is the lowest in the company's history, which
should produce price/earnings mutliple valuations beyond
historic highs."
-- "Many near-term positive catalysts appear to be on the
horizon, creating a great short-term and long-term buying
opportunity for Intel," he wrote.
-- He maintained a six to 12-month price target on the
stock of $185. The stock was trading up 3-1/2 to 156-5/8 in
heavy trading shortly after the opening Friday, a marked
turnaround from the 11 point retreat of the last two days.
Chaplinsky took issue with comments by Prudential analyst
Mark Edelstone, who argued this week that most of the earnings
potential for Intel was figured into the stock and the era of
spectacular appreciation seen in recent years was behind it.
At 17 times his 1997 year estimate of $8.75 per share, he
said Intel is trading in the middle of the range in terms of
price/earnings multiple versus other large-cap chipmakers, in
spite of the 180 percent gain in Intel stock since early 1996.
In terms of competition, Chaplinsky wrote that, "We believe
the microprocessor architecture war is over as every
alternative microprocessor is clearly losing ground to Intel."
-- "We believe the recent sell-off provides an excellent
opportunity to accumulate INTC," Chaplinksy said, referring to
Intel by its ticker symbol. |
