Intel price target lowered to $25 from $28 at BofA

BofA analyst Vivek Arya lowered the firm’s price target on Intel (INTC) to $25 from $28 and keeps an Underperform rating on the shares after the company issued a Q1 sales outlook that calls for revenue to be down 40% year-over-year and "well below" the firm’s and consensus estimates. The Q1 gross margin guided to 39%, or 36% excluding a 300 basis point benefit from a depreciation schedule change, would be the lowest in the firm’s multi-decade model for Intel and "lowest in the semis industry," BofA stated. While bulls will likely say this estimate reset clears the decks, bears will likely argue that there is simply no evidence of a turnaround as rivals such as AMD (AMD), Arm, Nvidia (NVDA) and TSMC (TSM) are getting stronger, the firm added.