Wedbush Remains Neutral On Intel Following Acquisition Of 20% Minority Stake in Tsinghua
In a report released today, Wedbush analyst Betsy Van Hees reiterated a Neutral rating on Intel Corp. (NASDAQ:INTC) with a $34 price target, following the news that the company has agreed to acquire about a 20% minority stake in the holding company under Tsinghua Unigroup consisting of Spectrum Communications and RDA Microchip for about RMB 9B (~$1.5B).
Van Hees noted, “While we view the investment as a positive and a vehicle for Intel to drive expansion of its mobile portfolio into the China market, we maintain our NEUTRAL rating on Intel as we continue to look for visibility that PCs will remain stable after the corporate refresh (driven by the expiration of XP) ends and tablet share will continue once the contra dollar program ends.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Betsy Van Hees has a total average return of 19.6% and a 63.0% success rate. Van Hees has a 24.7% average return when recommending INTC, and is ranked #137 out of 3321 analysts.