Stock Update (NASDAQ:INTC): [$$] Intel Spin-Out Would Boost Imperva, Proofpoint

[at Barrons.com] – Guggenheim Securities Earlier this week, multiple news outlets reported that Intel was considering spinning out its security business. An Intel Security spin-out could have broad competitive ramifications depending on the nature of the deal, but in any case we would expect some level of disruption to Intel’s security business, with non-core products likely feeling the brunt of the impact. Within our coverage, we believe that Imperva (IMPV) (rated at Buy) and Proofpoint (PFPT) (rated at Buy) could stand to benefit from such disruption, as Imperva competes with Intel’s non-essential database security product, and a sale of Intel Security could incentivize remaining email customers to transition more quickly to Proofpoint. Read more on this. Intel Corporation (INTC) , with a current value of $150.77B, started the session at $31.35. During the trading session, INTC traded between $31.31 to $31.98 and has traded between $24.87 and $35.59 over the past year. INTC shares are currently priced at 12.94x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 12.63x earnings multiple for the same period. And for those looking to make a return holding the stock, the company pays shareholders $1.04 per share annually in dividends, yielding 3.30%. According to a consensus of 28 analysts, the earnings estimate of $0.53 per share would be $0.02 worse than the year-ago quarter and a $0.03 sequential decrease. The full-year EPS estimate is $2.41 which would be a $0.08 better than last year’s full-year earnings. The quarterly earnings estimate is predicated on a consensus revenue forecast of $13.53 Billion. If reported, that would be a 2.50% increase over the year-ago quarter. Recently, Credit Agricole Initiated INTC at Underperform (May 17, 2016). Previously, Northland Capital downgraded INTC from Outperform to Market Perform. Given all the information above, we should disclose to readers that the average price target is $35.49, which is 13.21% above than it opened this morning. See more in (NASDAQ:INTC) Similar Articles: Stock Update: Intel Corporation (NASDAQ:INTC) – Intel (INTC) Stock Down on Potential Cyber Security Unit Sale Stock Update: Intel Corporation (NASDAQ:INTC) – Intel Stock to Trade Ex-Dividend (INTC) Company Update: Intel Corporation (NASDAQ:INTC) – Intel (INTC) Stock: Canaccord Lowers Price Target on PC Supply Chain Data Points