Intel (INTC) Stock Earnings Estimates Raised at Canaccord
NEW YORK (TheStreet) -- Intel's (INTC) - Get Report fiscal 2016 and 2017 earnings estimates were raised to $2.41 from $2.39, and to $2.78 from $2.75, respectively, at Canaccord this morning.
The firm also hiked the Santa Clara-based technology company's price target to $40 from $38 on the stock. Canaccord has a "buy" rating on shares.
The increases to estimates come after PC results were "better than feared" for the 2016 fiscal second quarter and full year, according to the analyst note.
The positive data come at an opportune time for Intel, ahead of the expiration of downloadable Windows10 upgrades and "ahead of Intel's first iPhone (AAPL) modem sales that combined with significant cost cuts should lower mobile business losses dramatically," the firm said.
Additionally, Intel recently announced a "restructuring to lower the operating expense runrate by approximately $350 million per quarter by mid-2017 to offset lower PC revenue," Canaccord wrote.
"These items combined with an attractive dividend yield and valuation make Intel a compelling core stock holding in our view," the firm noted.
Intel is scheduled to report 2016 second quarter earnings after the market close on Wednesday.
Analysts surveyed by Thomson Reuters are looking for earnings of 53 cents per share on revenues of $13.54 billion for the second quarter. A year ago the company reported earnings of 55 cents per share on revenues of $13.2 billion for the same quarter.
Shares of Intel are down 0.09% to $35.04 in mid-afternoon trading.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate INTEL CORP as a Buy with a ratings score of B+. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, reasonable valuation levels and increase in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: INTC
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