Roth MKM maintains Neutral on Intel following dividend cut

Roth MKM notes that Intel announced a significant reduction in the annual dividend in support of strategic investments to, among other things, regain manufacturing leadership. The firm is "encouraged" that Intel was able to reiterate its Q1 2023 guidance for a significant near-term revenue decline, affirming a more stable supply chain correction environment supporting recent favorable semiconductor share tone. Intel reiterated 2023 planned $3B cost reductions with newly announced compensation adjustments and a slightly reduced 2023 lower capital intensity guidance, Roth MKM notes. The firm maintains a Neutral rating on the shares with a price target of $30.