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por Info » 11/7/2003 15:48

Intel Upped to Outperform at Thomas Weisel
By TSC Staff 07/11/2003 09:17 AM EDT

Thomas Weisel Partners upgraded Intel (INTC:Nasdaq) to outperform and raised its price target to $30, saying channel checks show an improving tone among resellers.

"In our view, the increasing optimism is likely to result in a gradual uptick for IT products in the second half of 2003, and a stronger spending environment in 2004," Thomas Weisel wrote. "We view Intel as a core technology holding and a beneficiary of an upturn in corporate IT spending."

The brokerage said Intel could see margin enhancement as consumers increasingly shift to notebook computers from desktops.

"We anticipate that Intel will end the second quarter with lean inventories that should limit the potential for highly discounted sales of older parts in the third quarter," it wrote. "Additionally, the lean inventory position should afford Intel the opportunity to increase factory utilization in the third quarter (thereby lowering production cost per unit). The secular shift to notebooks, and increasing shift toward high-margin Centrino should also boost margins."
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