In a report released today, Amanda Tan from DBS maintained a Hold rating on Intel (INTC – Research Report), with a price target of $22.00.
Amanda Tan’s rating is based on Intel’s current strategic position and future prospects. Intel is making significant efforts to regain its technology leadership, particularly through its “IDM 2.0” strategy, which involves substantial capital investments to enhance its manufacturing capabilities and expand its use of external foundries. However, despite these efforts, Intel is still facing challenges, such as delays in product launches and increased competition from companies like AMD and Nvidia, which have affected its market share and profitability.
Furthermore, while Intel has a roadmap to regain process leadership by 2025 with several new product launches, there are concerns about near-term margin pressures due to operating losses from its Foundry division and start-up costs. These financial headwinds are expected to persist until at least 2027. Consequently, Amanda Tan has given Intel a Hold rating, reflecting the belief that while the company has potential for recovery, it still faces significant hurdles that need to be addressed before it can achieve sustainable growth and profitability.
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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