Citigroup adds Intel to top picks live list

Wed Dec 16, 2009 6:58pm IST

The Citigroup sign is seen outside the Citigroup Center in New York, October 1, 2007. REUTERS/Shannon Stapleton/Files

The Citigroup sign is seen outside the Citigroup Center in New York, October 1, 2007.

Credit: Reuters/Shannon Stapleton/Files

Related Topics

(Reuters) - Citigroup added Intel Corp to its top picks live list, and said it expects the chipmaker to benefit from the near-term strength in the PC environment.

Despite concerns raised by peers, including a recent downgrade of Intel shares, the PC environment in the fourth quarter has been surprisingly strong, Citigroup said.

After under-performing the sector since mid-year, Intel shares will likely experience a period of near-term outperformance, the brokerage wrote in a note to clients.

"With structural improvements to gross margins and reduced startup and under-utilization charges, we are comfortable that high margins can be sustained," the brokerage said.

Citigroup said it was "especially comfortable" given the limited competitive offerings from Advanced Micro Devices in 2010.

The brokerage has a price target of $26 on Intel shares, which replaces "buy"-rated wireless technology provider Qualcomm Inc on Citigroup's top picks live list.

Shares of Intel were up 1 percent in premarket trade Wednesday, after closing at $19.80 Tuesday on Nasdaq.

(Reporting by Abhiram Nandakumar in Bangalore; Editing by Aradhana Aravindan)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Retaining talent, reviving company

REUTERS SHOWCASE

Modi's U.S. Trip

Modi's U.S. Trip

PM Modi to get rock star reception in New York.  Full Article 

Northeast Floods

Northeast Floods

Landslides and floods kill 22 in northeast India.  Full Article 

Food Subsidy

Food Subsidy

Ram Vilas Paswan says no plans to raise food handouts.  Full Article 

New Plants

New Plants

Canadian auto parts maker Magna to open two new plants in Gujarat.  Full Article 

Importing Iron Ore

Importing Iron Ore

JSW Steel to import 10 mln T of iron ore due to local shortage.  Full Article 

Breaking Up

Breaking Up

Philips to split off lighting business, form separate company.  Full Article 

End of Monsoon

End of Monsoon

Monsoon starts withdrawing from northwest region.  Full Article 

Border Row

Border Row

Chinese and Indian troops in Himalayan standoff.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage