Intel (INTC) PT Lowered to $60 at Roth Capital After Supply Constraints Lead to Lower Guidance

Roth Capital analyst Suji Desilva lowered the price target on Intel (NASDAQ: INTC) to $60.00 (from $65.00) while maintaining a Neutral rating after the company reported 2Q21 revenue and EPS above consensus, implying strong demand and a recovery across both client and data center. However, manufacturing supply constraints crimped the recovery which led to lower than expected guidance.

The analyst stated "INTC guided 3Q21 to be essentially flat sequentially reflecting tempering impact of supply constraints on otherwise continued broad healthy demand. We believe the enterprise/government data center recovery is sustainable and that cloud/data center demand will be steady now that we’ve moved passed inventory digestion impact. On the client front, we are encouraged by a record segment revenue in the quarter and the robust addressable market recovery in notebooks."

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