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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Engel who wrote (84998)	7/6/1999 5:54:00 PM
From: puborectalis	Read Replies (1) \| Respond to of 186894

Shares of the chipmaker rallied after both Prudential Securities and Merrill Lynch upgraded the stock Tuesday. "We are upgrading Intel to Strong Buy from Accumulate as we believe the company has reached an inflection point regarding processor average selling prices (ASPs), seasonality and product momentum," said Prudential analyst Hans Mosesmann in a report. He also raised his price target on Intel stock to $98 from $85. Mosesman pointed out that Intel shares have been largely left out of the 40% gain in chip stocks this year. The stock has appreciated only about 6%. "As investors realize Intel's potential in the second half of the year we believe the stock will outperform the group and we would be aggressive buyers before the July 13 second-quarter earnings conference call," he said. A big reason for his upgrade is his outlook for chip prices. Average selling prices for Intel chips in the second quarter should be at the low end of the company's historical range of $210 to $225, according to Mosesmann. "Going forward, we expect ASPs to start trending back to the middle of the range as the company has met its market share goals at the low end and as both the PIII and high-end Xeon chip continue to ramp into high volume," he said. "In our view, the segmentation strategy is powerful and working." Another recent concern for Intel was the two-month delay of its Coppermine chip, the latest and fastest version of the Pentium III. News of the delay prompted several analysts to cut their estimates and ratings on the chip maker last month. (U.S. Bancorp Piper Jaffray Ashok Kumar was one of the few analysts who said the delay wouldn't hit Intel as hard as everyone thought, and one of the first to point out that several fixes for the chip were already completed.) Mosesmann said he has verified that the company has fixed the problems, and that the Coppermine chip should be introduced in November. This should provide a "meaningful impact" to margins next year, he added. Longer term, Mosesmann said he is bullish on Intel's ability to "profitably set the direction of the PC platform and perhaps more importantly, the direction of the "set-top" platform." He trimmed his revenue estimates to $30.6 billion from $31.4 billion for this year, and to $38 billion from $39 billion for next year, but maintained his respective earnings per share estimates of $2.35 and $2.75. His revenue and earnings-per-share forecast for 2001 is $46.4 billion and $3.25, respectively. Merrill Lynch's Joseph Osha also chimed in with positive comments on Intel. The company is on track for a good year and the stock is undervalued, Osha said. So he raised his intermediate-term rating to Buy from Accumulate and reiterated his 12-month stock price target of $86. The chipmaker is "coping effectively" with declining chip prices in its desktop PC business, he said, and earlier concerns about weakening unit demand in the PC industry haven't been borne out. Intel's aggressive cost control and its focus on higher-margin chips for servers are the core of the company's strategy, Osha added. MR

To: Paul Engel who wrote (84998)	7/6/1999 6:14:00 PM
From: Mary Cluney	Read Replies (3) \| Respond to of 186894

Paul, >>>Let him say what he wants.<<< I strongly disagree with you and GVTucker who basically say that anlayst have no impact on share prices. I agree that there is some correlation between share prices and the performance of the company - but whether a company sells for 20X's earnings or 50X's earnings has more to do with sentiment - and that is largely based on the collective propaganda of all the "analysts" who cover the company on a full time basis or writers who write stories for Barron's, Wall Street Journal, whatever, on a one time basis. When a Dan Niles predicts earnings and revenues is one thing, but to recommend buy and sell advice is entirely a different matter. he should just lay out the facts as he "sees" it and leave the judgement to others. Mary