Citi Ups Intel Estimates

Citi jacks Intel (INTC) estimates after the solid Q1. (2009 EPS up to $1.66 from $1.59). The bank cites more favourable product mixes and share/revenue gains:

We are encouraged by Intel’s gross margin upside, recognising the long-held relationship between GM and share price. And while investors may have concerns about looming 32nm start-up charges and their implications to 2009 GM, we note that in years with start-up charges, Intel’s share actually tend to increase. We are also encouraged by clear signs of Intel share gains. With a limited new product roadmap from AMD, we anticipate this share gain will persist.

Helping estimates are higher revenue and GM assumptions and lower share count; hurting estimates are lower interest income and higher taxes.


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