UPDATE: BofA Securities Outlines Its Concerns on Intel (INTC) Painting a Dire Picture, PT Lowered to $45

BofA Securities analyst Vivek Arya lowered the price target on Intel (NASDAQ: INTC) to $45.00 (from $52.00) remaining cautious on INTC as the company’s strategic & financial challenges continue to rise. Concerns highlighted in the report include:

• Q3 sales missed incl. in data center
• Q4 guidance was only in line
• CY21 sales (ex-Apple modem loss) are set to grow only 3% in a year when PC units are up 10%+, and semi industry sales are set to grow 20-25%
• main rival AMD is expected to grow >50% YoY even though everyone is facing supply constraints

The analyst didnt offer light at the end of the tunnel commentary and instead, reiterated an Underperform rating, stating "While cost clarity is useful, it still doesn’t address INTC’s major strategic dilemma which is it already controls 85%+ share in PC/server CPUs when AMD is getting stronger and there is emerging challenge from several Arm-based rivals incl. Apple, Nvidia, Marvell, Ampere and others".

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