Intel Corporation (INTC), Freeport-McMoRan Copper & Gold Inc. (FCX): Monday’s Top Upgrades (and Downgrades)

FBR is quoted on StreetInsider.com today, arguing that that Intel “has added more than enough new avenues of growth to replace lost PC units.” In particular, FBR notes that “in our discussions with engineers intimately involved in the handset design process, they have unanimously expressed a renewed interest in Intel Corporation (NASDAQ:INTC)’s mobile SoCs, owing to expected power and performance advancements in the upcoming Silvermont SoCs.”

Assuming FBR’s right about the company’s prospects, Intel’s 12.6 P/E ratio looks like a cheap price to pay for consensus 11% growth, and a 3.7% dividend yield. Intel’s also generating good free cash flow — not quite as good as the profits that it’s claiming on its income statement, granted, but still pretty good at about $10 billion a year.

To my Foolish eye, the stock looks undervalued, and priced to do exactly what FBR says it will: Outperform the market.

Motley Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends HomeAway, Inc. (NASDAQ:AWAY) and Intel. The Motley Fool owns shares of Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), HomeAway, and Intel.

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

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