Intel (INTC) Stock Gets Price Target, Estimates Slashed at Pacific Crest

NEW YORK (TheStreet) -- Analysts at Pacific Crest lowered their price target on Intel Corp. (INTC) to $35 from $37 and cut its estimates for the year to $2.06 per share from $2.17 per share.

Shares of Intel are down by 1.29% to $30.62 in pre-market trading on Monday morning.

The firm said it lowered its numbers on the tech giant as a result of negative industry checks in Asia.

Pacific Crest also cited "a sub seasonal PC demand outlook in Q3, coupled with a delayed launch of Skylake processors," as its reasoning for the estimate and price target cut.

The firm maintained its "overweight" rating on Intel stock.

Separately, TheStreet Ratings team rates INTEL CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate INTEL CORP (INTC) a BUY. This is driven by a few notable strengths, 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, notable return on equity, reasonable valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.0%. Since the same quarter one year prior, revenues slightly increased by 0.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • INTC's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.18, which illustrates the ability to avoid short-term cash problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, INTEL CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for INTEL CORP is currently very high, coming in at 76.42%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.58% trails the industry average.
  • You can view the full analysis from the report here: INTC Ratings Report

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