In a report released yesterday, Joseph Moore from Morgan Stanley maintained a Hold rating on Intel (INTC – Research Report), with a price target of $25.00.
Joseph Moore has given his Hold rating due to a combination of factors related to Intel’s current strategic and operational challenges. The appointment of Lip-Bu Tan as CEO is seen as a positive step, given his strong industry knowledge and respected status. However, his lack of experience in critical areas such as process technology development and manufacturing raises concerns about the company’s ability to address its current challenges effectively.
Despite the positive market reaction to the CEO appointment, Intel faces significant headwinds, including delays in its server roadmap, a competitive CPU market, and substantial losses in its foundry business. These issues present near-term growth and profitability challenges for the company. While the CEO change is a promising start, the absence of immediate solutions to these problems justifies the Hold rating.
In another report released yesterday, Mizuho Securities also maintained a Hold rating on the stock with a $23.00 price target.
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