Intel price target lowered to $45 at Northland after ‘abysmal’ Q1 guidance

Northland analyst Gus Richard lowered the firm’s price target on Intel to $45 from $52 and keeps an Outperform rating on the shares after the company reported a "weak quarter" and gave "abysmal Q1 guidance." The firm views the x86 business as a legacy business in a state of decline and lowered its sum-of-the-parts valuation on a lower value for Intel’s x86 franchise, but Northland believes the future of Intel is its nascent foundry business, calling it "one of only three companies that can compete at the leading edge." However, Intel "needs to prove it can execute, sign foundry customers, and deliver Meteor Lake with competitive benchmarks," the firm acknowledges.