Intel Corporation (INTC), ON Semiconductor Corp (ONNN): Monday’s Top Upgrades (and Downgrades)

And yet, could it be that Evercore is too pessimistic? After all, most analysts still think Intel Corporation (NASDAQ:INTC) is poised to grow its profits at a respectable 11% clip over the next five years. Add in the beefy 3.7% dividend yield, and that seems to more than justify the modest 11.5 times earnings that Mr. Market is charging for Intel shares today.

The problem, however, is that already, Intel Corporation (NASDAQ:INTC)’s financial statements are starting to show signs of weakness. Free cash flow at the company lags reported income by more than 3%, suggesting less-than-sterling quality of earnings at the company. If Evercore turns out to be right about the decline in ASPs and unit sales, the stock could turn out to be pricier than its historical results make it look.

Personally, I’m still optimistic about the stock, trusting in the consensus of the 40 analysts who follow Intel to be more likely right about the growth trends than the one analyst who’s now warning of Intel’s imminent demise. But if those promised 11% growth rates fail to emerge, look out below.

Motley Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel.

The article Monday’s Top Upgrades (and Downgrades) originally appeared on Fool.com and is written by Rich Smith.

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