Wedbush Reiterates Neutral On Intel Following Acquisition Of LSI’s Axxia Networking Business
Intel Corp. (INTC) issued a press release on Wednesday announcing it has signed a definitive agreement to acquire LSI’s Axxia Networking Business and related assets from Avago Technologies (AVGO) for $650MM in cash. The transaction is expected to close in Q4 subject to government approvals and customary closing conditions.
In reaction to the acquisition, Wedbush analyst Betsy Van Hees today reiterated a Neutral rating on INTC, with a $34 price target.
The analyst commented: “Given INTC’s vast size, we view the acquisition largely as a tuck-in and a complement for its own network processor business.While we think INTC’s buyback will continue to bea nice floor to the stock, we believe for INTC to outperform the group from here that we will need to see consumer PC demand resume in Q3/Q4 and a clear path to profitability for MCG.”.
According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Betsy Van Hees has a 20.9% average return and a 69% success rate. Van Hees has a total average return of 24.7% when recommending INTC, and is ranked #107 out of 3222 analysts.