Baird cuts Intel stock price target to $20 from $25

Published 31/01/2025, 06:22
Baird cuts Intel stock price target to $20 from $25

On Friday, Baird analyst Tristan Gerra revised the price target for Intel stock, listed on (NASDAQ:INTC), to $20.00, down from the previous target of $25.00. Despite this adjustment, the analyst maintained a Neutral rating on the stock. According to InvestingPro data, analyst targets for Intel currently range from $19 to $31, with the stock trading near $20. Gerra’s assessment followed Intel’s management commentary regarding the fourth quarter performance, which was partly attributed to customers stockpiling inventory in anticipation of potential tariffs.

Intel has projected a loss of market share in the PC sector, particularly against competitors using ARM architecture, throughout the current year. However, the company anticipates a rebound in market share by 2026. Additionally, Intel foresees a stabilization of its market share in the data center segment for the year.

The company has also updated its capital expenditure outlook for 2025, setting it at $20 billion, which is at the lower end of its previously stated range. At this time, Intel has not provided a forecast for its free cash flow (FCF) for the year 2025. The Baird analyst has reiterated a Neutral rating on Intel shares, reflecting a cautious stance on the company’s financial outlook and market position.

In other recent news, Intel Corporation has been the subject of various analyst reviews. Roth/MKM analysts reduced the stock’s price target from $25.00 to $20.00, maintaining a Neutral rating. The adjustment comes in response to Intel’s Q1 2025 guidance, which was set significantly below the typical seasonal trends. Rosenblatt Securities reaffirmed a Sell rating on Intel’s stock with a target price of $20, citing weak PC demand, limited data center sales, and ongoing market share losses.

Meanwhile, Global Equities Research encouraged clients to take advantage of the current weakness in Intel’s stock, citing strong prospects for the company’s AI initiatives. Cantor Fitzgerald maintained a Neutral stance on Intel shares, with a price target of $22. Northland analysts upheld their Outperform rating for Intel, with a $28 price target.

Recent developments include Intel’s collaboration with United Microelectronics Corporation on a pilot production line in Arizona and the construction of its new manufacturing complex, known as the Silicon Heartland, in Ohio. The company also announced its intention to spin off its venture capital arm, Intel Capital, into an independent fund.

The company’s earnings for the fourth fiscal quarter of 2024 are expected to align with current expectations, with revenue pegged at $13.8 billion and Non-GAAP EPS of $0.12. Rosenblatt projects a slightly negative forecast for Intel’s first fiscal quarter of 2025, with revenue forecasts at $13.0 billion and Non-GAAP EPS of $0.17.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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