NEW YORK - Intel Corp. “delivered on elated expectations” when it posted better-than-expected earnings in search the fourth house, but the shard maker could clock challenges in 2010 as marketability in search desktop computers slows, an analyst said Friday.
Jefferies analyst Adam Benjamin said pricing pressures could also weigh on Intel, the world’s largest maker of microprocessors, the “brains” of computers.
That’s correct to growing marketability in search cheaper, low-end laptops, which invite in less in clover.
Benjamin raised his end forbear to $17 from $15.
The analyst, who rates Intel “Underperform,” said the company’s ownership forbear and Wall Street’s estimates “already muse about expectations in search an propose upgrade recycle.” That means he thinks investors already skilled in belittling computer spending purposefulness descend from a avail this year because of businesses and administration agencies replacing outdated models.
Overall PC shipments grew more than expected in the fourth house, a foreboding of retrieval after a hard-hearted 2009.
Intel, based in Santa Clara, Calif., earned 40 cents per interest in the latest house, up from 4 cents per interest a year earlier. Revenue climbed 29 percent to $10.6 billion. Analysts polled during Thomson Reuters expected a profit of 30 cents per interest.
Kaufman Bros. analyst Suji De Silva kept a “Buy” rating and a $25 end forbear on Intel. “We anticipation in search this sturdiness to adequate on into 2010.”
Intel shares rose 7 cents to $21.55 in premarket trading. The analyst called the quarter’s results “robust.”
“We learn ensure willingness of customers to procure higher-end servers and notebooks regardless of cash conditions as a assertive bum of the sturdiness of (Intel’s) output offerings,” De Silva wrote in a note to investors.