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

To: Tony Viola who wrote (120642)	12/5/2000 11:03:56 AM
From: Proud_Infidel	Respond to of 186894

Robertson Stephens Update for INTC: Intel Corporation NASDAQ: INTC $32.94 Long-Term Attractive 2000 EPS: $1.66 from $1.68 2001 EPS: $1.70 from $1.75 Eric Rothdeutsch, Semiconductors/Computer Hardware “Our recent checks with motherboard manufacturers in Asia indicate that motherboard demand continues to be weak while inventories of components, including chipsets and DRAMs, continue to build,” said Rothdeutsch. “In what appears to be a deteriorating demand environment for PCs, we no longer believe that our 6.5% sequential revenue growth estimate for 4Q00 is achievable for Intel — particularly in light of what we believe are accelerating price cuts on processors — and we are cutting our assumption to 2.5% sequential revenue growth. As a result, we are lowering our F2000 revenue and EPS estimates from $34.35 billion and $1.68 to $34 billion and $1.66, respectively. We are lowering our F2001 estimates from $40 billion and $1.75 to $38.5 billion and $1.70, respectively. We believe that sales in the non-processor areas — flash memory, networking and communications products — should account for most, if not all, of the growth in 4Q00. While we believe that near-term prospects for PC component suppliers look bleak, we are more optimistic about the prospects for the 2H01 given what should be an accelerating Windows 2K adoption rate, the accompanying upgrade cycle for corporate PCs, and the production ramp of the Pentium 4. Although we think it is too early for the stock to begin to reflect what should be improving market demand in the 2H01, we think the downside to the stock price at these depressed levels is minimal. We are maintaining our Long-Term Attractive rating on INTC and are lowering our 12-month price target from $50 to $45, or 26 times our new F2001 EPS estimate of $1.70.”