Susquehanna Downgrades Intel, Broadcom on Slower Demand

Susquehanna Financial Group analyst Chris Caso this afternoon downgraded both Intel (INTC) and Broadcom (BRCM), citing signs of slowing end market demand for PCs.

  • Intel: Caso cuts his rating to Neutral from Positive based on checks that find a weakening PC environment leading into Q3. “The secular elements of our INTC thesis remain intact, but we believe estimates need to come down, and are hesitant to continue recommending the stock ahead of estimate cuts,” he writes. Caso thinks we could be beaded for the worst Q3 for notebooks since 2001.
  • Broadcom: Caso moves his rating to Neutral from Positive. He writes in a research note that checks find “a broader slowdown in end-market demand.” Caso says his primary areas of concerns are not a large percentage of the company’s revenue, we nonetheless thinks a slowdown will make it tough for the stock to outperform until demand issues are resolved. In particular, he has concerns about demand in the PC, consumer electronics and Nokia (NOK) handset markets.

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