Deutsche Bank Comments on Intel (INTC), Altera (ALTR) Rumors

Deutsche Bank analyst Ross Seymore commented on Intel (NASDAQ: INTC) following rumors last Friday from WSJ that said it was in talks to acquire Altera Corp (NASDAQ: ALTR). Seymore noted Altera and Broadcom (NASDAQ: BRCM) have long been considering targets for Intel, and a deal would make sense. He also noted average premiums for deals in the space could imply a price for Altera in the mid- to upper $40s.

"Given their foundry relationship at 14nm, Altera’s need for leading edge technologies and Intel’s expertise in process technologies, we think this makes as much strategic sense today as it has in the past. Intel’s $20b share repurchase plan announced last year seems to have decreased the likelihood of a deal of such scale, as Intel seemingly believed buying back its own stock a superior alternative," said Seymore.

"Should the deal occur, however, the average premium to prior day close for semi deals has been ~35%, implying a price in the mid- to upper-$40s," he added.

Deutsche Bank has a Buy rating on Intel with a price target of $38.

For an analyst ratings summary and ratings history on Intel click here. For more ratings news on Intel click here.

Shares of Intel closed at $32.00 yesterday.

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