USB Piper maintains its buy rating on Intel (INTC).
Analyst Ashok Kumar says as expected, revenue will come in towards low end of guidance. He notes non-processor revenues, flash and Comm-ICs continue to remain weak with the timing of recovery uncertain. He maintains his $0.13 Q2 EPS, and $6.1 billion revenue estimates. Due to seasonal factors, Intel maintained its constructive outlook for the second half. But early indications suggest a less-than-robust build going into the back-to-school season. The potential spoiler is margins. However, Intel's bet on capital expenditure should prove beneficial in the long term. Kumar has a $45 target.