Intel (INTC) Likely to Report 10c - 15c of Upside - Northland Capital Markets
Northland Capital Markets analyst Gus Richard reiterated an Underperform rating and $48.00 price target on Intel (NASDAQ: INTC) but expects the company to beat a low bar for Q3. The likely scenario is conservative guidance and a guide that is in-line to slightly better than consensus.
The analyst stated "CY20 has been better than expected as the pandemic has driven notebook and cloud demand. While hyperscale demand is a secular grower, the PC market is not. We believe that PC sales are unsustainably high. In addition, competition from AMD and ARM in the server market will be a substantial headwind for INTC". He went on to state "We expect Intel to report non-GAAP
earnings between $1.20 and $1.25 versus guidance of $1.10 drive-by top-line upside. Intel’s revenue in a normal year is up low double digits sequentially in Q3. Revenue guidance of $18.2B for Q3 is down 8% Q/Q".
Shares of Intel closed at $52.73 yesterday.