Analyst Joseph Moore of Morgan Stanley maintained a Hold rating on Intel (INTC – Research Report), reducing the price target to $23.00.
Joseph Moore has given his Hold rating due to a combination of factors that reflect Intel’s current challenges and future potential. The transition in leadership at Intel suggests that significant changes are necessary to address past inadequacies, such as improving execution and transforming company culture. These changes are expected to take time and indicate a complex situation that won’t be resolved quickly.
Additionally, while there is a renewed focus on producing world-class microprocessors, the company’s previous overemphasis on process technology rather than product design has resulted in products that have not met expectations. The ongoing supply constraints of the Intel 7 process and weaker guidance further complicate the outlook. Despite these challenges, there is a sense of long-term value and optimism, but patience and resilience will be required to see the turnaround through.
In another report released today, Wells Fargo also maintained a Hold rating on the stock with a $22.00 price target.