UPDATE: Piper Jaffray Lowering Price Target On Intel

Piper Jaffray is out with a research report on Intel INTC and is lowering its price target to $21 from $23, but is keeping its Neutral rating on shares. In a note to clients, Piper Jaffray writes, "We believe Intel is stubbornly clinging to the PC era where x86 dominates and is failing to make the transition to a new era of mobile computing. We believe talks between Intel and Apple for foundry services have cooled down. In addition, we understand Intel's design flows and IP libraries are not sufficient at 22nm and customers are waiting for 14nm. Evidence of the end of the PC era continues to mount. HP is talking about spinning off its PC business. Google is buying Motorola Mobility. Finally, consumers with smartphones increasingly comment they are using PCs less. At the same time, Intel is increasing its capital spending and R&D to position itself for a new era, but we believe these efforts continue to fall short. We think that over the next 12 months this spending will negatively impact GM and OM as revenue growth fails to materialize. Maintain Neutral." Shares of INTC gained 19 cents yesterday to close at $19.38, a gain of 1%.