Oppenheimer top analyst Rick Schafer offers insight on Intel Corporation (NASDAQ:INTC) after attending the Intel Developer Forum (IDF). At the conference, INTC CEO Brian Krzanich delivered a keynote highlighting management’s priority that reveals a continued shift away from PCs, with Krzanich’s presentation underscoring virtual reality as a clear highlight, along with IoT, autonomous driving, cloud computing, machine learning, and smart cities.
Following the IDF, Schafer reiterates a Perform rating on shares of INTC. The analyst appreciates the blue chip giant’s savvy moves in its transition and renewed focus, but believes new investments require more time to take root. Until then, PC client exposure presents a near-term headwind, and Schafer predicts this is “keeping a lid on growth/valuation.”
Schafer opines, “We believe Mr. Krzanich is continuing to set the tone that Intel is no longer a PC component supplier, but is instead providing computing platforms enabling a variety of applications as data generation, processing, analytics, and visual computing become more pervasive. It is also evident that Intel will seek out partners to accelerate this transition, with guest presenters at the event from Microsoft, BMW, and GE all making appearances.”
Schafer concludes, affirming his neutral attitude on the giant, “While we like the strategic direction away from PC, and the rationale of the ALTR acquisition, growth/profitability remains challenged due to legacy PC exposure. We remained sidelined here.”
As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Rick Schafer has achieved a high ranking of #21 out of 4,124 analysts. Schafer upholds a steady 71% success rate while earning 15.2% in his annual returns. However, when recommending INTC, Schafer loses 0.4% in average profits on the stock.
TipRanks analytics demonstrate INTC as a Buy. Based on 27 analysts polled in the last 3 months, 18 rate a Buy on INTC, 7 maintain a Hold, while 2 issue a Sell. The 12-month average price target is $37.77, marking an 8% upside from where the shares last closed.
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