Intel (INTC) Stock: What to Expect on Thursday?
Intel buying chip designer Altera for about $16.7 billion
FILE - In this Jan. 7, 2010, file photo, people are silhouetted in front of the Intel sign at the International Consumer Electronics Show (CES) in Las Vegas. Microchip maker Intel is buying chip designer Altera for about $16.7 billion in cash, the company announced, Monday, June 1, 2015. (AP Photo/Laura Rauch, File)
Intel (NASDAQ:INTC) investors have enjoyed a constructive market ride over the last three months. Shares of the semiconductor giant raced nearly 15% higher, doubling the performance of the S&P 500 market barometer over the same period. Can Intel maintain these valuation levels, or is the stock overdue for a correction?
Nomura analyst Romit Shah still sees about 17% upside for INTC, as he reiterated a Buy rating and a $60 price target, heading into earnings. (To watch Shah’s track record, click here)
Intel is scheduled to report first-quarter earnings on Thursday, April 26th. The company’s focus on data center, cloud, self-driving car and Internet of Things (IoT) are key growth drivers for the first quarter.
Shah is forecasting revenue of $15.4 billion and EPS of $0.76, compared to consensus estimates of $15.1 billion and $0.71, respectively. The analyst points out that expected strength in Data Center drives his above-Street estimates.
The Street largely seems to echo Shah’s positive sentiment, considering TipRanks analytics showcase INTC as a Buy. Out of 29 analysts polled in the last 3 months, 19 are bullish on Intel stock, 7 remain sidelined, and 3 are bearish on the stock. With a potential upside of 10%, the stock’s consensus target price stands at $56.57.