Cantor Fitzgerald Lowers Intel Price Target to $26

Cantor Fitzgerald analyst C.J.

Muse lowered the price target on Intel (NASDAQ: INTC) to $26 (from $29) while maintaining a Neutral rating.

“We Look for a Modest Reset with New CEO’s Arrival; All Eye’s on Potential for New Strategy Across Product-Co and Foundry-Co: This will be the first Intel earnings call with Lip-Bu Tan at the helm.

From a strategic perspective, we see little change from our prior expectations, though we see room for additional aggressive cost cutting to come over the next quarter and a greater sense of urgency and purpose.

We expect Intel to post in-line results followed by a miss for the guide as the company takes advantage of a new CEO to reset numbers given recent volatility and macro headwinds.

And with a new CEO combined with today’s geopolitical uncertainty, we will most assuredly not be provided guidance for CY25.

Overall, we continue to see this time as a transition period as the company solidifies its strategic path forward, though see a lot of wood to chop in the interim.

Catalyst paths ahead include further RIFs, Intel Foundry Day on April 29th, which will include a keynote by Lip-Bu, as well as any announcement related to a potential JV partnership with potential customers.

When we look at SOTP that suggests fair value of $26 (our new price target of $26 equates to 2x core ProductCo revenues + $29B for Investments + $15B for FoundryCo; our prior price target of $29 had assumed higher valuation for ALTR, higher MBLY share price than current, and $25B for FoundryCo), we think risk/reward remains skewed to the upside.

But given the tough slog ahead, we reiterate our Neutral rating.”

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