Here’s Why Canaccord Upgraded Intel Corporation (INTC) From Hold To Buy


Canaccord Genuity analyst Matt Ramsay raised his rating on Intel Corporation (NASDAQ:INTC) from Hold to Buy and slightly reduced the price target to $38 (from $40) in a research report issued today. The increased rating was in response to a 15% pull-back YTD, more confidence in estimates versus market expectations, a compelling dividend yield, and 23% upside to the analyst price target.

Ramsay noted, “We have detailed at length our view Intel fundamentals have improved dramatically, highlighted by sustained foundry advantages and strong secular momentum supporting 15%+ DCG and 20%+ IoTG growth potential. While Mobile losses remain heavy, we believe Intel’s modem/SoC technology is gradually closing the gap in a quickly thinning herd of competitors. However, we had remained HOLD-rated as we held concerns Intel’s initial outlook for flat Y/Y PC units in 2015 was too optimistic given the likelihood of less support from enterprise WindowsXP upgrades, increased reliance on consumer notebooks perpetually battling smartphones for share of wallet, and unfavorable FX movements.”

“With Intel having reset PC expectations to what we believe will prove much more realistic (even beatable?) levels, we believe investors can now BUY Intel shares on the back of DCG and IoTG strength without fear of a false PC bottom. We reduce our forward estimates to reflect the lowered PCCG guidance and our PT drops from $40 to $38 as a result.”

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 7.3% and a 69.0% success rate. Ramsayis ranked #921 out of 3511 analysts.

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