Sterne Agee CRT On Intel: We See More Pros Than Cons In China's Server Market, Emerging Competition

Sterne Agee's Douglas Freedman reiterated Intel Corporation (NASDAQ: INTC)'s Buy rating and $38 price target.

"We see more pros than cons in China's server market and emerging competition" said Freedman. Part of this analysis was formed on high barriers of entry in the market where "capital access doesn't guarantee a quick path to success." Additionally, server shipment in China is "expected to grow at a three-year CAGR of 13% to reach 2.6M in 2016," which amounts to 22 percent of global server shipment says Freedman.

Although the analyst did admit there was "rising competition in the silicon market," Freedman claimed it would only have "limited threats" to Intel. Rising opponents will take 3-5 years before mass deployment, according to the analyst.