RBC Capital Markets Analyst Doug Freedman is not currently recommending investors to buy Intel Corporation (INTC) stock. He says the shares are not inexpensive on his cash-flow metric.
“I have not been bullish on Intel for a few months here largely on the fact that we don’t see that growth in compute or a growth in cash flow that’s material,” Freedman says.
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Freedman recommends looking for stocks that are trading at 10 times projected cash flow. Intel, he says, is trading at 13 times forward cash flow.
“Given the overarching thesis that I have that the real growth in spending is going to be on the network and storage side, we’re steering people away from the compute of which Intel would be really the center name there,” Freedman says.
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