Cowen analyst, Tim Arcuri, reiterated his Market Perform rating on shares of Intel (NASDAQ: INTC) after the company produced results driven by a PC driven beat and evidence appeared that cost religion may be brewing. That does not appear to be enough for the analyst however and he believes that the company should consider spinning off its manufacturing business.

The analyst is "starting to wonder" if a better long-term strategy would be to go fabless by outsourcing the manufacturing and signing a cross license to some of the technology to keep it captive. He believes that this would free DCG in terms of manufacturing and free up massive amounts of costs that could be reinvested in platform development and/or M&A. This is a radical idea and INTC would probably never go for it, but we believe the structural headwinds are hard
to get around.

No change to the price target of $39.

For an analyst ratings summary and ratings history on Intel click here. For more ratings news on Intel click here.

Shares of Intel closed at $37.43 yesterday.