This Analyst Sees 20% Upside for Intel (INTC) Stock Ahead of Earnings Today

Chip giant Intel (NASDAQ:INTC) will be in the spotlight this afternoon when it reports second-quarter earnings results. In a sense, the numbers that the company will put out aren’t going to be that interesting, as the company already announced in June that it’s raising its Q2 revenue and EPS guidance with revenue expectations of $16.9 billion and non-GAAP EPS forecast at $0.99 versus previous revenue and EPS guidance of $16.3 billion and $0.85, respectively.

BMO analyst Ambrish Srivastava noted, “Well, safe to say a fair bit has changed since the company’s last earnings call. Intel is without a permanent CEO after the departure of Brian Krzanich. As we indicated in our note at that time, it is never easy when the CEO resigns from a company whose shares one is recommending or owning. The questions that arise, among the obvious one, about who will Intel pick to lead, how committed he/she will be to the strategy of the former CEO, particularly around what were Mr. Krzanich’s two “babies,” the acquisition of Altera and Mobileye, not to mention the C-level churn that usually accompanies a change at the top. Meanwhile, fundamentals continue to look strong for the company.”

For 3Q18, Srivastava expects revenues of $17.4 billion, and GAAP EPS of $1.02, vs. consensus estimates of $17.6 billion and $1.03, respectively.

Net net, Srivastava reiterates an Outperform rating on Intel shares, with a price target of $62, which represents a potential upside of about 20% from where the stock is currently trading.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ambrish Srivastava has a yearly average return of 12.4% and a 73.3% success rate. Srivastava has a 12.1% average return when recommending INTC, and is ranked #541 out of 4840 analysts.

Out of the 39 analysts polled in the past 12 months, 21 rate Intel stock a Buy, 14 rate the stock a Hold and 4 recommend Sell. With a return potential of 11.5%, the stock’s consensus target price stands at $58.08.


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