Intel (INTC) shares are down sharply this morning following the company’s announcement of disappointing results for the fourth quarter and a cautious outlook for the first quarter and 2008. Analysts note that the troubles at the company stem from issues in its NAND and NOR flash memory segments; microprocessor demand met expectations. While Intel said specifically that it was not seeing any impact on demand from a slowing economy, it did say that it was taking a cautious approach this year due to the possibility of a slowdown. Many analysts this morning cut estimates and price targets on the stock; some see the post-earnings drop as a buying opportunity. Here is a rundown on reaction from the Street:

• Uche Orji, UBS: Maintain Buy rating, but price target cut to $29 from $32. Cuts Q1 EPS estimate to 32 cents from 34 cents; ‘08 to $1.36 from $1.50; ‘09 to $1.63 from $1.69. Orji says there are no catalysts for the stock until the March 5 analyst meeting.
• John Pitzer, Credit Suisse: Maintain Outperform rating; target to $30 from $35.
• Tristan Gerra, Robert W. Baird: Keeps Neutral rating, cut target to $23 from $30. Gerra says he does not expect gross margin expansion to resume until 2009. “Our checks indicate a slowdown in component orders by notebook OEMs over the past few weeks, following a below seasonal Q4,” he writes. Cuts ‘08 EPS estimate to $1.30 from $1.60.
• Glen Yeung, Citigroup: Maintains Buy rating, but target to $27 from $33. “Near-term, this disappointment, combined with a lack of economic clarity, is likely to continue to pressure shares and investors need not rush to buy,” he writes.
• John Barton, Cowen: Keeps Outperform rating; cuts ‘08 EPS to $1.40, from $1.45. “While we expect soft March guidance to pressure the stock, we believe the fundamental outlook remains relatively unchanged,” he writes.
• Gurinder Kalra, Bear Stearns: Outperform rating, $29 target. Cuts ‘08 EPS estimate to $1.42 from $1.49. Kalra says the stock is in “oversold territory, and advises accumulating shares, with the stock already discounting a below-seasonal first half.
• Christopher Danely, J.P. Morgan: Maintains Neutral rating; ‘08 EPS estimate to $1.44, from $1.66. He sees an inventory correction in the first half due to slowing PC demand and excess processor inventory, and advises waiting to buy the stock until after an inventory correction, “when fundamentals and consensus estimates are closer to bottoming.
• Tim Luke, Lehman: Maintains Overweight rating, but cuts target to $23 from $30. Cuts ‘08 EPS estimate to $1.32 from $1.53. “Investors are likely to focus on subdued Q1 sales guidance and potential for lower notebook ASPs and macro weakness to impact longer-term outlook and double-digit PC growth forecast,” he writes. But Luke also says the stock is at a trough multiple.
• Michael McConnell, Pacific Crest: Maintains Sector Perform rating. He notes that the digital enterprise group has grown revenue 12% sequentially in each of the last two quarters, much higher than in the last three years; he thinks that may point to an inventory issue. He also says there is “clear evidence of excess desktop component inventory at top customer Dell.”
• Daniel Berenbaum, Caris: Keeps rating at Above Average, but cuts target to to $24 and reduces ‘08 EPS estimate to $1.35 from $1.53. He sees evidence that “gross margin seems to be peaking.” Adds Berebaum: “Estimates are still at risk, and we would not be aggressive buyers here, but INTC’s competitive position is strong, costs are under control and the PC market could still eke out some growth this year.”

Intel today is down $2.57, or 11.3%, at $20.12.