Why Intel Corporation Might Pop in 2014
While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.
What: Shares of Intel Corporation climbed 3% this morning after Citigroup upgraded the chip gorilla from neutral to buy.
So what: Along with the upgrade, analyst Glen Yeung reiterated his price target of $28, representing about 15% worth of upside to yesterday's close. While momentum traders might be turned off by the stock's sluggish 2013, Yeung believes that stabilizing consumer PC and enterprise demand should serve as positive catalysts in 2014.
Now what: For the first time since 2008, Citigroup's model for corporate PC demand is greater than that of consumer demand. And while consumer demand remains particularly sluggish, Yeung believes that Intel's PC shipment guidance for 2014 is sufficiently conservative. When you combine those seemingly reasonable expectations with Intel's still-dominant scale, it's tough to disagree with Citi's upgrade.
Get great growth for your portfolio today
Motley Fool co-founder David Gardner, founder of the No. 1 growth stock newsletter in the world, has developed a unique strategy for uncovering truly wealth-changing stock picks. And he wants to share it, along with a few of his favorite growth stock superstars, WITH YOU! It's a special 100% FREE report called "6 Picks for Ultimate Growth." So stop settling for index-hugging gains... and click HERE for instant access to a whole new game plan of stock picks to help power your portfolio.
The article Why Intel Corporation Might Pop in 2014 originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.