CIBC World raised its estimates, and keeps sector perform on Intel (INTC).
Analyst James Jungjohann says Intel is benefiting from strong demand for PCs in emerging markets and in Asia; an information-technology recovery in Japan; steady trends in consumer PC markets in North America; and early signs of corporate demand in western Europe.
Jungjohann notes U.S. corporate PC demand still lags. He thinks Intel's average selling prices and gross margins are being buffered by an improvement in Intel's product mix, a lack of competitive pressure from Advanced Micro Devices, lower microprocessor unit costs and lower manufacturing startup costs.
He raised the 75 cents 2003 earnings per share estimate to 81 cents, and upped the 95 cents 2004 estimate to $1.05. However, Jungjohann thinks investors have chased the stock ahead of an information-technology upswing.