Piper Jaffray Maintains Neutral on Intel

Piper Jaffray is out with its report today on Intel INTC, maintaining Neutral. In a note to clients, Piper Jaffray writes, "We believe INTC is talking to OEMs about foundry relationships. We believe this is a direction the company needs to go in order to aggregate volume and maintain its dominance in the leading edge logic market. Moreover, we think the strategy will work well with OEMs that sell into the data center, communication infrastructure market and things that plug into the wall. However, Intel's legacy is not ultra low power mobile markets. We continue to see evidence and get feedback from contacts that the company's design methodology is not well suited for these markets. We also believe the foundries are running into significant road blocks moving to smaller geometries and this is increasingly going to be problem for fabless competitors." Piper Jaffray maintains a $22.50 PT on INTC. At the time of posting, shares of INTC were trading pre-market at $22.60, up 1.76% from Friday's close.