Analysts at Deutsch Morgan Grenfell see a minimal financial fallout to Intel Corp following its delay of the Merced chip until mid-2000 (CI No 3,421). If any negative backlash does occur, says DMG, it won’t occur until 1999. Even so, OEMs don’t have much choice but to wait for Merced, according to analyst Scott Nirenberski. Nevertheless, he has cut his 1999 earnings per share estimate by $0.05 but maintained a buy rating on the stock and a $90 price target, saying that psychological bite is worse than the financial one. Intel shares fell $3.4375 on Monday, or nearly 5%, to close at $68.
