In a note to investors dated Wednesday, analysts at Sterne Agee warn that PC makers may cut production 10% to 12% quarter-over-quarter in the period ending in March. The decline is larger than the 6% to 7% consensus estimate for Intel Corp. (NASDAQ: INTC) shipments in the quarter. The year-over-year trend indicates a decline of 10% or more in the March quarter.
The investment firm has a Neutral rating on Intel stock with a price target of $20 a share. The stock closed at $25.95 on Tuesday after posting a new 52-week high of $26.04. To say that Sterne Agee is cool on Intel shares is probably an understatement.
Corporate PC sales were slightly higher in the just completed December quarter, up 25,000 to 100,000 units, but consumer sales were flat with expectations. January’s build rates for PCs and notebook computers are sharply down, and the belief that sales trends…
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