JP Morgan downgraded Intel (INTC ) to market perform from long term buy.
Analyst Eric Chen says he believes Intel's latest round of price cuts and its 845G rollout have failed to spark end market demand. More importantly, Chen says the lack of any major product introductions in the second half of 2002, and the customer's apparent reluctance to react to additional price cuts so far are likely to result in a weaker than normal seasonal second half (back to school and holiday season). He cut his $0.67 2002 earnings per share estimate to $0.58, and trimmed the $1.04 2003 estimate to $0.80. Chen believes the stock is fully valued at 45 times his new 2002 estimates and 32 times his new 2003 estimates.