INTC Estimates Upped; Still Facing Headwinds

Analysts at Auriga reiterate their “hold” rating on Intel Corp (NASDAQ: INTC), while raising their estimates for the company. The target price for INTC is set to $20.

Channel checks revealed unexpected strength in PC build plans. In-line with this, Intel has reported robust results and issued a strong guidance. However, investors should not forget that INTC still faces “cyclical and secular headwinds,” which may lead to a peaking of y/y revenue comps in 1Q, the analysts say. Auriga continues to prefer Microsoft Corporation (NASDAQ: MSFT) and Micron Technology Inc (NASDAQ: MU) for exposure to improving PC sales.

The pro forma EPS estimates for FY1Q10 and FY2010 have been raised from $0.35 to $0.37 and from $1.42 to $1.53, respectively.

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