Analysts reset Intel stock price target ahead of earnings

Intel (INTC) banal has gained astir 26.27% twelvemonth to date, astatine the clip of writing, Saturday morning, Jan. 17, according to Yahoo Finance. Meanwhile, SPY is up 1.43% successful the aforesaid period. What caused Intel banal to outpace the S&P 500 by astir 25%?

Two important expert notes boosted the stock. The archetypal 1 was connected January 5, erstwhile Melius Research upgraded Intel to bargain from clasp with a $50 terms target. The 2nd was connected January 13, erstwhile KeyBanc upgraded Intel to overweight (buy) from assemblage value with a $60 terms target.

KeyBanc expert John Vinh wrote that Intel’s foundry reached output rates much than 60% connected its 18A manufacturing process (node), which are bully capable to ramp Panther Lake, according to Wall St Engine's station connected X (formerly Twitter). Vinh’s probe indicates that Intel Foundry Services has landed Apple arsenic a lawsuit connected 18A for low-end M-series processors, expected to spell into accumulation successful 2027.

Intel’s Q4 net volition beryllium released connected January 22, and respective different analysts person besides updated their sentiment connected Intel stock.

Citi upgraded Intel's standing from merchantability to neutral, and raised the terms people from $29 to $50, according to TheFly. Citi analysts judge Intel volition payment from “tightness” successful TSMC's precocious packaging supply. The steadfast wants to spot Intel reverse its stock losses earlier recommending investors bargain the stock.

Jefferies reiterated a clasp standing and raised the Intel banal terms people from $40 to $45. The steadfast expects Intel's full-year commentary to beryllium “relatively disappointing.”

UBS expert Timothy Arcuri reiterated a neutral standing and raised Intel's banal terms people from $40 to $49. Barclays expert Tom O’Malley reiterated an adjacent value standing and raised Intel's banal terms people from $35 to $45.

Bank of America expert Vivek Arya and his squad besides updated their sentiment connected Intel stock  up of earnings.

Arya’s squad hosted an capitalist gathering astatine CES with Intel capitalist relations typical John Pitzer. The squad present expects in-line oregon amended Q4 income and gross margins of $13.4 cardinal and 36.5% respectively. Analysts said that steadfast server income should offset the archetypal interaction of rising representation prices connected PCs.

In a probe enactment shared with me, Arya reiterated an underperform standing for INTC banal and the people terms of $40, based connected a 3.5 aggregate of his endeavor value-to-sales ratio estimation for 2027, successful enactment with the humanities scope of 1.7 to 4.

• Lower than yield/ramp astatine Intel Foundry, peculiarly for its caller 18A and upcoming 14A nodes

• Lack of worldly outer foundry lawsuit successful wafer processing

• Weaker-than-expected trends successful a mature PC market

• Accelerated stock nonaccomplishment to large CPU competitors