Intel Receives Hold Rating as Jefferies Analyst Lowers Price Target by 19%

By Don Francis, Editor
May 14, 2024 9:31 AM UTC
Intel Receives Hold Rating as Jefferies Analyst Lowers Price Target by 19%

Jefferies's Blayne Curtis assumed coverage on Intel (NASDAQ: INTC) with a Hold rating. The analyst also lowered their price target by 19% from $42 to $34.

Curtis took coverage of the U.S. semiconductor names "with a bullish long-term view into a strong upcycle with duration." The analyst explained that the sector is "still early in the cycle" and that this particular cycle will be even stronger with AI.

In Q1 2024, Intel reported earnings per share (EPS) of $0.18, beating the Zacks Consensus Estimate of $0.13 and Q1 2023’s $(0.04) by 450%. The revenue for the quarter was $12.7 billion, which missed the Zacks Consensus Estimate of $12.9 billion but beat Q1 2023’s $11.7 billion by 8.5%. The gross margin was reported at 45.1%.

For Q2 2024, Intel's management guided an EPS of $0.10, revenue in the range of $12.5 billion to $13.5 billion, and a gross margin of 43.5%. CEO Pat Gelsinger expressed confidence in their plans to drive sequential growth throughout the year, emphasizing their focus on acceleration of AI solutions and maintaining operational discipline.

On May 13, 2024, the analyst made several changes to other names in their portfolio. They lowered the price target on Applied Materials Inc by -2.3% from $215 to $210 and downgraded the stock from Strong Buy to Hold. Similarly, the price target on Interdigital Inc was lowered by -5.7% from $106 to $100, and the stock was downgraded from Strong Buy to Hold. Navitas Semiconductor Corp saw a significant decrease in price target by -60% from $10 to $4, and the stock was downgraded from Strong Buy to Hold. The price target on Arteris Inc was lowered by -18.2% from $11 to $9, and the stock was downgraded from Strong Buy to Hold. Lastly, the price target on Advanced Micro Devices Inc was lowered by -5% from $200 to $190, but the Strong Buy rating was maintained.

According to top-rated analysts, 17.4% consider Intel as a Strong Buy or Buy, while 69.6% see it as a Hold. On the other hand, 13% either recommend or strongly recommend selling the stock.

The consensus forecast among analysts is that Intel's upcoming year will deliver earnings per share (EPS) of $0.89. If the analysts are right, Intel's next yearly EPS will be down by 7.5% on a year-over-year basis.

Since Intel's latest quarterly report on May 7, 2024, the stock price has experienced a 0.6% decrease. However, on a year-over-year basis, the stock has shown a 2.4% increase. During this period, Intel is trailing behind the S&P 500, which has seen a significant 26.2% increase.

Jefferies analyst Blayne Curtis, who assumed coverage on Intel, is ranked in the top 4% out of 4,581 Wall Street analysts by WallStreetZen. With an average return of 13.4% and a 50% win rate, Curtis specializes in the Technology and Communication Services sectors.

Intel Corporation, headquartered in Santa Clara, California, is a global leader in the design, manufacture, and sale of computer products and technologies. The company offers a wide range of platform and non-platform products, including central processing units, chipsets, accelerators, boards and systems, graphics, and memory and storage products. Intel also provides solutions for targeted verticals and embedded applications, as well as workload-optimized platforms for cloud service providers, enterprise and government, and communications service providers. The company serves various customers, including original equipment manufacturers, original design manufacturers, and cloud service providers.

Is Intel a Buy, Hold or Sell?

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