Evercore Reiterates Underweight on Intel Following Earnings Call, Broadwell Delay

In a report published Wednesday, Evercore analyst Patrick Wang reiterated an Underweight rating and $20.00 price target on Intel Corporation (NASDAQ: INTC).

In the report, Evercore noted, “Our thesis remains intact and we come away from the earnings call incrementally more cautious on a number of points: Broadwell delay. 14nm FinFET isn't easy for anyone, including process tech leader Intel. This isn't a material impact to 2014 revenues as a 3mo delay isn't meaningful. It does, however, negatively affect perception on the infallibility of Intel's process roadmap. It's not clear whether the defect issue was process, design, or a combination thereof. 4Q GMs would have missed (<60%), if not for the Broadwell delay. A bit of a technicality, associated reserves will now be recognized in 1Q. This will be offset by 14nm ramp tailwinds. If not for the delay, 4Q GM would have been ~59.5%, implying EPS of 48c (vs. 51c). DCG +10% YoY target. Mgmt guided to a very robust 4Q (+12% QoQ) and believes the +10% YoY target still remains a possibility. While an impressive 2H ramp, this appears to be a slight downtick from previous expectations.”

Intel Corporation closed on Tuesday at $23.45.