Intel's Quarterly Estimates Trimmed But Analyst Positive On Stock

Weak PC growth could push Intel Corp. below second-quarter earnings estimates, according to Deutsche Bank analyst Ross Seymore, who trimmed his quarterly estimates on the company in a note to clients on Monday. While Intel appears to be running within its own guidance range, he said recent checks indicate that the timing of the Win10/Skylake launch may push gains from those launches into the second half of the fiscal year. However, he maintained a buy rating and $37 price target on the stock, saying Intel still offers a favorable risk/reward at its current valuation, and that PC headwinds should lessen later this year or in fiscal 2016. Separately, Credit Suisse maintained an outperform rating and $40 target on the stock, saying Intel's second-quarter revenue guidance is still achievable despite weak PC data in April and May. However, Credit Suisse is less confident Intel will be able to achieve its full-year targets. Shares of Intel fell 0.3% in premarket trade. They closed down 1.7% to $31.32 on Friday. The company is scheduled to report earnings on July 21.