HSBC downgrades Intel to Reduce on ‘overdone’ share rally

HSBC analyst Frank Lee last night downgraded Intel (INTC) to Reduce from Hold with a price target of $24, up from $21.25. While the company’s the deals with SoftBank, U.S. government and Nvidia (NVDA) were at a discount to the market price, the stock is up 55% since the first deal announcement in August, the analyst tells investors in a research note. HSBC believes further deal announcements could drive the stock higher in the short term, but says Intel’s own fab execution remains key to any sustainable turnaround. As such, it believes the re-rating of Intel shares is overdone. A technology deal with TSMC (TSM) “is the only one that matters” and is unlikely despite potential for future investments, contends HSBC.