Tristan Gerra, an analyst from Robert W. Baird, reiterated the Hold rating on Intel (INTC – Research Report). The associated price target remains the same with $20.00.
Tristan Gerra has given his Hold rating due to a combination of factors affecting Intel’s current and future performance. The company is navigating a challenging transition year, influenced by macroeconomic factors such as potential tariff-induced costs and a contraction in total addressable market and customer investments. Despite efforts by the new CEO, Lip-Bu Tan, to streamline operations and cut costs, Intel’s revenue outlook remains bleak, with expectations of a year-over-year decline across all segments for the fourth consecutive year.
Additionally, Intel faces structural challenges, including uncertainties in chip design and product roadmap, which contribute to ongoing revenue issues. While the company’s U.S.-based manufacturing is seen as a strategic asset, the potential for a joint venture remains uncertain due to the challenging macroeconomic environment and negative free cash flow. The first quarter results showed some positive surprises, but the guidance for the second quarter indicates continued struggles, reinforcing the Hold rating with a price target of $20.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $20.00 price target.