Tristan Gerra, an analyst from Robert W. Baird, maintained the Hold rating on Intel (INTC – Research Report). The associated price target remains the same with $20.00.
Tristan Gerra’s rating is based on a combination of factors, including the recent developments surrounding Intel’s preliminary agreement with TSMC for a joint venture. This potential collaboration could lead to changes in Intel’s equipment procurement strategy and may require the company to sell off some equipment. Despite the positive market reaction to this news, there is no formal agreement yet, which adds an element of uncertainty.
Additionally, Gerra considers Intel’s current valuation, with a price target of $20 based on a 15x P/E multiple of projected 2027 earnings. This valuation reflects temporarily depressed earnings as Intel undergoes a turnaround, which may eventually lead to earnings recovery and market share stabilization. However, risks such as potential market share losses to competitors like AMD, delays in technology advancements, and challenges in executing its long-term product strategy contribute to the Hold rating.
According to TipRanks, Gerra is a 4-star analyst with an average return of 4.3% and a 44.60% success rate. Gerra covers the Technology sector, focusing on stocks such as Intel, Semtech, and Himax Technologies.
In another report released on April 1, Bernstein also maintained a Hold rating on the stock with a $25.00 price target.