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I Intel reporting its first quarter earnings tomorrow after the close ahead of themselves my next guest has boosted its estimates and price target for the chipmaker -- -- -- Doug Freedman analyst RBC capital markets -- -- back to show.
Guy -- easy comp -- right to boost your outlook for Intel given the -- already pretty low Dalia.
Are expected to report a 10% earnings decline from a year ago -- expecting.
This is correct what has occurred in the market is we have some floods in Thailand that cause some component shortages -- -- -- Those distress caused fourth quarter to be much less than normal seasonal.
And now we're in the first quarter -- company had guided to much less than normal seasonal and that situation we think is improving.
-- right so most analysts in the consent -- are sticking with a buy rating for Intel.
Your price target to 33 dollars.
You think he'll change that after the call tomorrow.
Now while we can't really -- -- -- -- but I would say in front of the call we didn't just raise it from thirty to 33 dollars we do you think -- a very good way to play the back half of the year.
We think these Thailand floods are behind us to describe constraints are easing the company has some very nice new products that favorite recently introduced.
There Romley base servers which target.
The data center growth that we're seeing in the marketplace as well as they're about to launch -- ivy bridge processors in the second quarter.
Which will really fuel the ultra books that the company has been.
Pushing quite rapidly these are products that are super thin and light no.
It's interesting -- that Intel's going that direction hasn't hurt the company that it hasn't been part of the apple empire.
Well they actually are benefiting a little bit from apple it's really be ultra books apple has the MacBook Air that Intel is of supplier and you can't -- that said.
That said they are you know not part of the Apple iPhone or -- -- pat.
Now I happen to be of the belief today when we get these ultra books into the market.
That tablets the ultra books and notebooks will put up a little bit of good defense -- against the tablet that is really serving.
As at ultra mobile computing platform right now.
All right so one last question does would you by the stock had in the earnings -- Sally I guess you would buy -- we start it's up about little bit here.
Yes we still be a buyer of this stock.
You know if you really look at Intel we think the new buyers have Intel such as the -- Buffett's that got on board earlier in the quarter.
Are not looking to play this for one quarter to they really are looking forward -- next year's earnings power and looking at the multiple is saying.
Why does this stock traded a discount to the S&P 500.
I that we're all set up for Intel's earnings marked -- about thanks again that's -- Great thanks be.
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