Intel (INTC) Best Value in Semis, Earnings To Disprove Concerns

Broadpoint.Amtech reiterated its buy rating on Intel Corp. (NASDAQ: INTC) with a target of $29 even as it lowered the multiple to 14x.

Strength in server and notebook markets will guide the revenue close to the upper end of management’s guidance while reduced taxes guided by the management (20% instead of 27%) will help boost earnings. This will help in countering the increased SG&A costs and impact of FTC actions (FTC is expected to settle for less instead of forcing Intel to license modern x86 instruction sets to avoid a protracted legal battle).