Bernstein Raises Intel Price Target to $36
Bernstein SocGen Group analyst Stacy Rasgon raised the price target on Intel (NASDAQ: INTC) to $36.00 (from $35.00) while maintaining a Market Perform rating.
“Sentiment on Intel has certainly turned upward in recent weeks amid the 18A launch, foundry hopes, and (yes) Presidential tweets.
On the positive market dynamics at least in servers seem supportive, getting 18A out the door helps the narrative, and of course the favor of the administration helps.
At the same time, however, share losses seem ripe to continue, supply constraints seem more due to customers opting for older products vs new, and while it feels like beating a dead horse we still believe CPUs have been over-shipping PCs for some time (perhaps this will all come to a head amid potential PC headwinds this year).
In the meantime18A yields (while presumably improving) likely have quite a ways to go, and a bigger decision to go in on foundry is going to have to be accompanied by higher capex.
And Street estimates appear to mis-model SCIP-related NCI with overall numbers going forward still looking high to us. Fundamentals and valuation keep us sidelined even amid Trump’s blessing.
Bumping PT to $36 on higher numbers; MP.”
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