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

To: Tony Viola who wrote (69963)	12/18/1998 11:58:00 AM
From: Ibexx	Read Replies (1) \| Respond to of 186894

Tony and thread, Details of Prudential's upgrade issued this morning ________ INTC: RAISING Q4 ESTIMATES DUE TO ROBUST HIGH-END DEMAND. Summary Bullets - ASPs expanding by $5-$6 sequentially for Q4, based on continued robust demand for PIIs and Xeons. - Sub$1K segment remains tough, as a result from AMD's strong price/performance K6-2 offering.- Outlook for Q1 may indeed be for flat sequential revenue growth, based on continued strong demand at mid-to-high end. Demand for x86 class processors continues to be robust in the December quarter. For Intel, the fourth-quarter story is strong demand for Pentium IIs and the new high end Xeon, as well as ASP expansion. ASP expansion of $5-$6 sequentially from $213-$214, we believe, is the result of this strong demand at the high-end, but also a result of the competitive environment at the low end of the market (sub$1K), which is particularly tough given AMD's success with its new K6-2 socket-7 based solution. Our new revenue estimate for the fourth- quarter is based on 27 million processors, up from the 24.0-24.5 million shipped in the third quarter. We believe investors focus over the next several weeks will be on the company's outlook for the first- quarter. While we have been expecting a sequential revenue decline in the first-quarter for seasonal reasons, demand at the high end appears to be so strong, that Intel may indeed have the visibility to guide for flat revenue growth based on our industry checks. We are revising our fourth-quarter revenue and earnings estimates to $7.6 billion and $1.10, from $7.4 billion and $1.04. We feel there is excellent upside potential for the quarter from gross margins based on a better mix towards Pentium IIs vs. Celeron processors. We are leaving intact our revenue and earnings estimates for 1999 at 32.0 billion and $4.70 with good upside potential. Our target price is $130. (Tooooo low--ibexx) _____ Ibexx