Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Goldman Sachs Downgrades Intel


Goldman Sachs downgraded Intel (INTC) and Freescale Semiconductor (FSL) to in-line from outperform.

Analyst James Covello says he is transitioning coverage of Intel and Freescale (both downgraded); as well as Texas Intruments (TXN), Advanced Micro Devices (AMD), and SanDisk (SNDK) -- which remain rated in-line; and Micron Technology (MU) -- which stays at underperform.

Covello believes key drivers of the classic upturn (operating leverage, strong ASPs, and lengthening lead times) are absent, and valuations are rich at 38 times normalized earnings per share.

He believes Intel's margins are close to peak levels (which tends to coincide with a stock peak), and robust 2005 capex is likely to lead to uninspiring sales and margins in 2006.

The analyst believes Freescale no longer represents a "deep value," hence improved sales momentum is likely needed for further stock acceleration.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus