UPDATE: Raymond James Downgrades Intel (INTC) to Underperform
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Raymond James analyst Chris Caso downgraded Intel (NASDAQ: INTC) from Market Perform to Underperform.
The analyst comments "Our Underperform rating reflects not just the risk that Intel won’t reach that goal, but also the pain they will likely endure in pursuit of that goal in terms of capex, lost market share, and a shifting landscape in datacenter that will make the industry less dependent on Intel. In addition, we’re concerned that demand in the PC market, on which Intel remains highly dependent, has been significantly pulled forward due to the pandemic, and expect an eventual mean reversion – which may unfortunately occur just as Intel needs to ramp investment. We’re also skeptical about the foundry business, because Intel simply won’t have the technology to be competitive for some time, and that business will also consume significant cash, even with government support. We therefore believe the fall analyst day could be a negative catalyst, as investors get the bill for that investment."
Shares of Intel closed at $63.80 yesterday.
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