Citi analyst Christopher Danely reiterated a Hold rating on Intel (INTC – Research Report) today and set a price target of $21.00.
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Christopher Danely has given his Hold rating due to a combination of factors related to Intel’s strategic decisions and market positioning. The recent report of a potential joint venture between Intel and TSMC, where TSMC would operate Intel’s fabs, has led to a 7% increase in Intel’s stock. However, Danely expresses skepticism about the feasibility of this collaboration due to significant differences in manufacturing and operational processes between the two companies.
Danely questions the strategic wisdom for fabless companies to engage with Intel’s foundry services, given Intel’s historical challenges in competing with TSMC. He suggests that Intel’s continued involvement in the merchant foundry business could negatively impact its financial performance. Consequently, Danely recommends that Intel should focus on its core CPU manufacturing business to enhance shareholder value, maintaining a Neutral stance with a price target of $21.00.
In another report released yesterday, Robert W. Baird also maintained a Hold rating on the stock with a $20.00 price target.