Intel: Much Of This Fundamental Strength Is Already Reflected In The Stock, Says Canaccord


In a research report released Friday, Canaccord Genuity analyst Matthew Ramsay maintained a Hold rating on Intel (NASDAQ:INTC) with a price target of $35.00, which represents a slight downside potential from current levels.

Ramsay comments, “We attended Intel’s analyst day in Santa Clara and walked away still with mixed feelings as to upside to the stock from current levels following the significant (and well-earned) appreciation over the last 12 months. While the management team presented very strong product portfolios and growth prospects for both DCG and IoTG, as well as confidence to continue Moore’s Law beyond 10nm as a key differentiator, Mobile loss forecasts for 2015 were worse than our expectation and only modestly improved Y/Y. Further, despite 2015 guidance for PCs that was better than feared, market stabilization continues to become more dependent on a recovery in consumer PC spending versus enterprise, which drove the recent resurgence.

The analyst concluded, “We believe Intel is well positioned for solid earnings growth while delivering attractive capital returns over the next few years. However, we believe much of this fundamental strength is already reflected in the stock given the recent appreciation, and lingering questions regarding mobile ROI remain.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Matt Ramsay has a total average return of -11.1% and a 43.8% success rate. Ramsay is ranked #3185 out of 3393 analysts.

 

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