Citi Adds Intel to "Top Picks Live" List, Cuts Qualcomm (INTC,QCOM)
Citi analyst Glen Yeung said that the tech-giant underperformed the broader sector since mid-year (INTC 19.6%, SOXX 28.8%, S&P500 20.5%), Citi sees Intel shares showing a period of near-term outperformance.
Citi said that despite concerns from other ratings groups regarding the health of the PC environment in the fourth quarter of 2009, demand has remained strong.
Citi said; "For example, November NPD data showed U.S. retail point-of-sale data increased 90% m/m, substantially better than seasonal (+45%) and contrary to expectations of marginal order cuts for PC/PC components. We expect Intel to benefit from this strength near term, evident in 4Q09 results toward the upper end of their guidance. Meanwhile, our checks continue to point to low inventories in the supply chain. This is likely to translate to above seasonal and above consensus 1Q10 guidance (consensus -8.8%, seasonal -8%)."
by Chip Brian