Intel: shares struggle after broker downgrade.
(CercleFinance.com) - Intel was the sharpest faller on the Dow Jones index on Monday, dropping after Jefferies downgraded the stock, saying that the chipmaker has "the most to lose" in the new computing world.
Not only did the broker downgrade its rating on the shares from "hold" to "underperform," but also reduced its estimates, and cut its target price for the share from 38 dollars to 29 dollars.
In particular, Jefferies believes that Intel's Xeon server processors are disadvantaged versus graphics rival Nvidia.
"We expect Intel's server business to continue to decelerate," the broker warns in a research note.
The Intel stock was down 1.7% at 33.2 dollars in early trading today.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
Not only did the broker downgrade its rating on the shares from "hold" to "underperform," but also reduced its estimates, and cut its target price for the share from 38 dollars to 29 dollars.
In particular, Jefferies believes that Intel's Xeon server processors are disadvantaged versus graphics rival Nvidia.
"We expect Intel's server business to continue to decelerate," the broker warns in a research note.
The Intel stock was down 1.7% at 33.2 dollars in early trading today.
Copyright (c) 2017 CercleFinance.com. All rights reserved.