Citi analyst Christopher Danely maintained a Sell rating on Intel today and set a price target of $29.00.
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Christopher Danely has given his Sell rating due to a combination of factors impacting Intel’s position in the semiconductor market. One primary concern is Intel’s lag in the merchant foundry business, where it remains significantly behind TSMC, a key competitor. Despite reports suggesting Intel might supply Apple with ARM-based chips, Danely expresses skepticism about Intel’s ability to produce leading-edge ARM chips by 2027, given its current technological gap and lack of experience in ARM chip production.
Danely also highlights Intel’s financial struggles in the foundry sector, noting substantial losses over recent quarters. He suggests that Intel should consider exiting the merchant foundry business to focus on its core strength of manufacturing its own chips, which could potentially enhance shareholder returns. The Sell rating is further supported by a target price of $29, reflecting a lower valuation compared to the average trading range of semiconductor companies due to Intel’s reduced profitability.
According to TipRanks, Danely is a 5-star analyst with an average return of 11.0% and a 56.79% success rate. Danely covers the Technology sector, focusing on stocks such as Micron, Intel, and Texas Instruments.
In another report released on November 17, Bank of America Securities also maintained a Sell rating on the stock with a $34.00 price target.