Intel (INTC) PT Raised to $20 at Rosenblatt

Rosenblatt analyst Hans Mosesmann raised the price target on Intel (NASDAQ: INTC) to $20.00 (from $17.00) while maintaining a Sell rating.

The analyst commented: " Intel delivered $13.3B for a slight upside for 3Q24, mostly on the sale of previously written down inventory. Non-GAAP EPS of $(0.46) vs. our/cons $(0.01) on significant restructuring charges. CCG and DCAI came in slightly below our expectations. The 4Q24 outlook of $13.8B is slightly below our $14.0B (above the cons $13.7B), and the market continues to experience mixed product/foundry dynamics, including some seasonal normalization and inventory adjustments. Management’s move to right-size the company will take time. They are aiming for FCF to be positive for 2025 even with GM headwinds on the 18A process node ramp for 2026 in Foundry, Lunar Lake CPU mix (high cost), and a lower-than-expected Gaudi AI accelerator transition (we believe they have already missed the product cycle). Net/net is a mixed bag. A big part of the upfront cost of the transition has been paid off, but the year of benefit potential will not be seen until 2026. Hence, 2025 is again transitional in nature. We reiterate our Sell rating and update our $17 PT to $20 on a mid-teens P/E multiple off our 2026 EPS."

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