Banc of America upgraded Intel Corp. (INTC) to buy from market performer.
Analyst Douglas Lee says 1Q EPS was a penny ahead of his estimate. He says management thinks the PC market has bottomed, and he sees the resumption of normal seasonal buying patterns. He cut the $0.62 2001 EPS estimate to $0.55 to reflect reduced gross margin guidance and sees $0.77 2002 EPS. Lee thinks the company's valuation on a market-adjusted basis offers an attractive risk-reward propostion to the long-term investor. Lee has a $35 12-18 month target.