Leading Wall Street brokerage house Lehman Brothers today said it cut the 2001 earnings estimates for both Dell and Intel and reduced Intel's 12-month price target as PC sales slowed. Both companies have invested heavily in Ireland in recent years.
Lehman analyst Mr Daniel Niles cut his 2001 estimate for Dell to $1 from $1.10 a share. Mr Niles sliced Intel's 2001 earnings estimate to $1.30 from $1.40 a share, and his 12-month price target for the world's leading PC chip maker to $40 from $55.
"We believe that both unit demand and pricing exiting the fourth quarter was more difficult than even pre-announced expectations for the PC industry," Mr Niles said in a research note, adding that he expects growth for the industry to be 3 to 5 per cent below the current 10 per cent forecast.
"It seems as though more aggressive pricing is not spurring much of an increase in demand, resulting in a trade-off between profitability and revenue growth," Mr Niles added.
Shares of Intel were down to $30.25 in pre-opening US trade, just above their 52-week low of $29.81, and far below their year-high of $75.81. Dell was at $17 in pre-opening trade from yesterday's close of $17.50.
Reuters