Intel (INTC) PT Lowered to $40 as RBC Capital Sees Share Loss Continuing

October 28, 2020 6:11 AM EDT
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Price: $56.07 +1.47%

Rating Summary:
    28 Buy, 20 Hold, 13 Sell

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    Up: 11 | Down: 5 | New: 41
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RBC Capital analyst Mitch Steves lowered the price target on Intel (NASDAQ: INTC) to $40.00 (from $45.00) while maintaining a Underperform rating after the acquisition of Xilinx on the belief that the combination of AMD/XLNX poses additional structural risk to the Intel story. The analyst offered 3 key points on the PT decrease:

1) the current expectations appear elevated with estimates calling for ~$5/share in earnings in 2022E

2) the recent AMD/XLNX transaction may create additional pressure on the FPGA side going forward

3) CPU share loss on both data center and PCs will likely continue

The analyst stated "Given our belief in additional competitive dynamics from the combined AMD/XLNX entity, we think a second phase of share loss may occur (on the FPGA side vs. the CPU side)".

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