Intel: Color on the Qtr -- > +5.75% @ 47.90
* Mizuho Securities notes that INTC continued strength moving into 2018, expecting to be up high single-digits. Intel noted it was addressing the security concerns with Meltdown and Spectre and continues to see no material financial impact. Raising their estimates, reiterating their Buy and raising their PT to $52, as they see a slow meltup with Data Center stronger and a tailwind with from lower taxes, higher dividends and an attractive valuation.
* FB Riley notes that 4Q's biggest surprise was Data Center's large upside, while a material PC beat essentially matched their preview. They are encouraged that following steady outperformance to C17's financial targets, C18 starts with an above-Street +3.5% y/y growth target, although with $3.55 in EPS a bit below the Street. On the plus side, they like 4Q's DCG-led revenue beat, significant GM upside, a much larger-than expected tax rate reduction to 14.0%, and a +10% dividend boost. Alternatively, 1Q's -12.0% q/q sales decline will fuel Bearish "peak cycle" concerns while C18 GM are lower than they previously expected due to higher 10nm fab start-up expense. C18's capex view is $14.0B/+22.0% y/ y, a much larger-than-expected increase driven by Memory and less so Logic. Risks persist such as AMD competitive inroads but they are encouraged with C17's execution and suspect conservatism in C18's targets. Their C18/19 PF EPS tick $0.04 and $0.39 higher, respectively to $3.54 and $4.29. Valuation is 13.3x and 11.0x these estimates, an attractive entry point in their view. Thier PT ticks up from $53.00 to $55.00 and they retain a Buy rating on value-oriented INTC shares.