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Intel: Caris Cuts Estimates

This article is more than 10 years old.

Another day bring yet another analyst cutting estimates on Intel.

This time, the estimate cutter is Caris & Co. analyst Craig Ellis.

"Broadly soft Windows 8 uptake buzz plus an absence of favorable PC demand data points means more cautious modeling is now warranted," Ellis writes in a research note. For Q4, he now sees profits of 41 cents a share, down from 46 cents. For 2012, his new forecast is $2.06, down from $2.11. For 2013, his forecast drops to $1.67, from $1.91. Ellis trims his target on the stock to $23, from $26.

Ellis notes that the stock is cheap, but suggests investors deploy new money in other stocks where order re-acceleration and fundamental catalyst prospects are brighter, including Analog Devices, Maxim Integrated Products and Texas Instruments.

The analyst now sees PC client revenue in Q4 down 2% sequentially from the third quarter. He now sees just a 1% increase in data center products. And he trimmed his gross margin forecast for the quarter by 150 basis points to 55.8%.

The estimate cut follows a similar move yesterday by analysts at Goldman and Morgan Stanley.

INTC this morning is up 12 cents, or 0.6%, to $19.65.