JPMorgan keeps an Underweight rating on Intel (INTC) with a $23 price target after the company announced a 51% stake sale of its programmable chip business, Altera, to Silver Lake Management for $4.46B, valuing Altera at $8.75B. The transaction marks the first major strategic move under Intel’s new CEO, Lip-Bu Tan, and underpins the company’s broader turnaround strategy and refocus to its core x86 businesses, the analyst tells investors in a research note. JPMorgan views the sale as a “step in the right direction,” but says Intel continues to navigate through a challenging period as it right-sizes the company.
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