Intel, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Christopher Danely from Citi maintained a Sell rating on the stock and has a $29.00 price target.
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Christopher Danely has given his Sell rating due to a combination of factors impacting Intel’s financial outlook. Despite Intel reporting better-than-expected results for the third quarter, with revenues and earnings surpassing estimates, the company’s guidance for the fourth quarter was less optimistic. The anticipated decline in revenue and gross margins, attributed to the challenges in the foundry business, has raised concerns about Intel’s future profitability.
Danely’s skepticism about Intel’s merchant foundry business stems from the belief that it is significantly lagging behind competitors like TSMC. This lag raises doubts about the business’s potential for success, leading to a negative outlook on Intel’s stock. Consequently, Danely maintains a Sell rating and a target price of $29.00, reflecting a lower valuation compared to the average trading range of semiconductor companies due to Intel’s reduced profitability expectations.
In another report released today, J.P. Morgan also maintained a Sell rating on the stock with a $30.00 price target.