Citadel Maintains Add on Intel

Citadel is out with its report today on Intel INTC. maintaining Add. In a note to clients, Citadel writes, "While the fate of the Intel's discrete application processors is unlikely to matter much to the stock in the near term, we think the opposite is true of Intel's total handset effort in the long term. As long as Intel continues to flounder in developing new businesses, it will continue to be viewed (rightly) as a company hostage to PC market growth. While Intel's investments in developing a baseband business are now entering a second decade, we think there is finally reason for some optimism on this front. With the purchase of Infineon's wireless business bringing cellular baseband and RF capability in house and the plan to align the cadence of SoC process and architecture development with the computing roadmap (by 2014), Intel could occupy a unique competitive position (arguably) within the next three years." Citadel maintains a $27 PT on INTC. At the time of posting, shares of INTC were trading pre-market at $22.50, down 0.49% from Tuesday's close.