Intel: shares slide after analyst's downgrade.

(CercleFinance.com) - Intel Corp shares fell on Wednesday after Credit Suisse downgraded the world's leading chip maker, citing a "a better company than stock.
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The share is currently down 1.1% at 34.8 dollars, the sharpest faller in the Dow Jones index today.

This morning the brokerage firm downgraded the shares from "outperform" to "neutral," while cutting its target price from 45 dollars to 35 dollars.

While Credit Suisse says it likes the strategic rationale behind the Mobileye acquisition, the broker also thinks the transaction is expensive at around 29x 2017 EV/sales.

At the same time, Credit Suisse points out that Intel shares are trading at a 10% premium to its peers.

The brokerage firm - which insists it has a positive view on the company, especially over the longer term - prefers to switch to a "solidly neutral view" on the stock, at least until there is some evidence that rates of Investment have peaked, and/or there is stronger revenue growth.

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