As is the practice, the analysts are out in full force this morning, the day after
announced the fourth quarter wasn't going to end up the way it had hoped. After
warning that revenue would fall short of expectations, Intel's gotten the axe this morning, with multiple downgrades and reductions in estimates. The company said yesterday fourth-quarter revenues would fall short of expectations, the second quarter in the row it announced it was falling short of expectations.
Dan Niles, in a comment this morning, said any rally in the stock should be sold due to ongoing concerns about slowed demand. Niles cut 2001 earnings estimates to $1.40 from $1.65, but cautioned, "this could be optimistic." Niles maintained an outperform rating.
Chase Hambrecht & Quist
lowered its rating to market perform from buy and dropped its price target to $45 from $50.
downgraded the company to a hold rating from add, on expectations of weak demand in the first half of 2001.
Credit Suisse First Boston
cut its 2001 earnings-per-share estimates to $1.45 from $1.66, and fourth-quarter estimates to 37 cents a share from 41 cents a share, but kept its buy rating.
cut fourth quarter estimates to 38 cents a share from 42 cents, and lowered 2001 estimates to $1.55 from $1.80.
dropped 2000 and 2001 earnings estimates to $1.63 and $1.55 from $1.66 and $1.70, but left alone its long-term attractive rating.
dropped its price target to $40 from $52, and lowered 2000 and 2001 estimates to $1.64 and $1.54 from $1.68 and $1.67, but didn't change its buy rating.
Deutsche Bank Alex. Brown
dropped 2000 estimates to $1.64 from $1.73, but maintained its underperform rating.
Going against the grain,
CIBC World Markets
upgraded the company to a buy from hold, setting a price target of $42.
Chase H&Q, in response to yesterday's Intel warning, not only dropped its rating on Intel this morning, but also downgraded
Advanced Micro Devices
to market perform from buy this morning. The company is another chipmaker that supplies PC makers.
"We believe the current depressed PC demand market environment will definitely affect Intel's main competitor, AMD," wrote Sudeep Balain, Chase's PC analyst. The price target was also lowered to $30 from $35 for AMD, as Balain expects the stock to remain under pressure. Balain also issued Chase's Intel downgrade to market perform from buy this morning.
Morgan Stanley Dean Witter
: UP to accumulate from neutral at
Sante Fe International
: UP to strong buy from buy at CSFB; price target: $55.
Talk about coming on a little late. Several analysts have downgraded
this morning after the company said Thursday that fourth-quarter revenue would fall short of expectations and announced the resignation of CEO Rob Wrubel. Robertson Stephens, Morgan Stanley, and Goldman Sachs all cut ratings on the company, as it expected when a company announces its intention to step into the toilet for a prolonged swim. However, the biggest head-scratcher has to be Goldman Sachs, which removed the stock from its recommended list this morning. What, exactly, a stock that was trading below $5 in preopen trading, off a cool 96% from its 52-week high, had to recommend it in the first place is hard to understand.
The company said yesterday it expects a fourth-quarter loss of 50 cents a share, wider than the 33-cent loss originally estimated by the eight-broker
First Call/Thomson Financial
: earnings estimates DOWN for 2001 to 58 cents from 65 cents a share at Merrill Lynch.
: earnings estimates DOWN to $1.09 from $1.13 in 2001 at
: earnings per share estimates DOWN to 84 cents from 95 cents for 2000; down to 80 cents from $1.15 in 2001 at CSFB.
: earnings estimates DOWN to a 17-cent loss from an expected 8-cent loss for 2000; for 2001, earnings estimate of 4 cents a share from 14 cents a share at Lehman.
reduced its price target to $3.
: NEW outperform at
Salomon Smith Barney
: NEW intermediate-term neutral and long-term buy at Merrill.
: NEW buy at Salomon Smith Barney.