UPDATE: UBS Downgrades Intel (INTC) to Neutral
- Wall Street rallies as Fed minutes meet expectations
- NVIDIA Shares Drop 6% on Disappointing Guidance, While Q1 Earnings Beat
- Apple (AAPL) Reportedly Behind Schedule in Development of the New iPhone, Analyst Cuts Price Target on Risk to June Quarter iPhone Revenue
- Oil edges higher on tight supply, rising U.S. refining activity
- After-Hours Stock Movers 05/25: NVIDIA, Snowflake Sink on Weaker Guidance; Williams-Sonoma Surges on Strong Numbers (more...)
UBS analyst Timothy Arcuri downgraded Intel (NASDAQ: INTC) from Buy to Neutral with a price target of $58.00 (from $73.00).
The analyst comments "The unexpected disclosure around the new long-term financial model, capex, and margin trajectory finally provides a framework for the next few years to which the stock can anchor itself and rips off the proverbial band-aid on gross margins. To that end, the 51-53% gross margin targets for the next 2-3yrs is not great but also not terrible given where some investors feared and the C2022 revenue guidance is actually a little better
than Street. The issue for us is now one of duration and the data center narrative. So, even as we remain strong believers that INTC will ultimately catch up in terms of the manufacturing and the relationship with TSMC is a big positive for the product roadmap, the upside catalysts over the next 12mos are less clear to us given the capex commentary. So, we are downgrading and cutting our PT to $58 and we will look for more evidence that this higher than expected capex will start to yield incremental customer engagement as the signal to get more positive again."
Shares of Intel closed at $56.00 yesterday.
You May Also Be Interested In
- UPDATE: Piper Sandler Downgrades 2U, Inc. (TWOU) to Underweight, 'Regulatory Overhang Elevates Downside Risk'
- Idemitsu Kosan Co Ltd (5019:JP) PT Raised to JPY5,000 at Jefferies
- Capstone Mining Corp. (CS:CN) (CSFFF) PT Lowered to Cdn$9 at Canaccord Genuity
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!