Market Preview: Halfway to May
Thirty of the 53 analysts covering Intel rate the stock at either hold (26) or underperform (4) and the 12-month median price target is $28, so valuation would appear to be a bit of a concern on the sell side. Intel shares closed Monday at $28.41, up 1.1%.
UBS is expecting an in-line performance, although it has a "bias" to the upside as hard disk drive supply constraints start to ease. The firm, which has a buy rating and $34 price target on Intel, thinks guidance for the second quarter should be strong as the company is poised to release its more energy-efficient Ivy Bridge processors later this month.
"We expect the trends from 1Q to support solid 2Q growth as Ivy Bridge ramps; the return towards normal hard drive supply and pricing along with a mix shift to ultrabooks (~10% of 2QE ODM
The firm added that its recent channel checks in Asia suggested that pricing is holding up well.
"Our Asian disti
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Goldman Sachs(GS) also reports its first-quarter results early Tuesday, and the average estimate of analysts polled by Thomson Reuters is for a profit of $3.55 a share on revenue of $9.45 billion. The financials have been a bit of a mixed bag so far with JPMorgan Chase(JPM) getting dinged on higher costs, but Citigroup(C) able to rally despite a topline miss.