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On Monday, Cantor Fitzgerald maintained a Neutral stance on Intel Corporation (NASDAQ:INTC) shares, with a set price target of $22.00. The stock currently trades at $20.79, having declined over 51% in the past year, with analyst targets ranging from $19 to $31. The firm anticipates Intel to report results that align with expectations, followed by a slight shortfall in their guidance. According to InvestingPro data, Intel is quickly burning through cash, with negative free cash flow of over $15 billion in the last twelve months. The firm's analysts suggest that any forward-looking statements regarding full-year expectations for calendar year 2025 are likely to be conservative. This approach would provide Intel with leeway to potentially raise its guidance throughout the year.
Cantor Fitzgerald's analysis predicts a potential recovery in the PC market and a stronger growth trajectory in the server market. They also expect Intel to indicate some regained market share in the accelerated server segment, although the gains are projected to be modest. The firm views the current phase as a transitional period for Intel as it establishes a definitive strategic direction under the leadership of its two new co-CEOs. Discover 8 more exclusive insights about Intel's market position with InvestingPro.
The firm's analysts believe that while Intel is in the midst of defining its future course, there are significant challenges to address in the meantime. Cantor Fitzgerald's price target for Intel is based on approximately 1.2 times the company's tangible book value, reiterating the $22 price target previously set. The assessment reflects a cautious outlook, with current Price/Book ratio at 0.89 and negative earnings yield, recognizing the efforts Intel must undertake to strengthen its position in the market.
In other recent news, Intel Corporation has made notable strides in its strategic partnerships and investments. Northland analysts maintained an Outperform rating on Intel, with a $28 target, highlighting the potential benefits from the $3 billion impairment and accelerated depreciation charges recognized in the third quarter. The collaboration with United Microelectronics Corporation (UMC) on a pilot production line in Arizona is progressing smoothly, with UMC currently verifying silicon performance, a crucial step before full-scale production begins.
Intel is also continuing its substantial investment in Ohio, with construction of its new manufacturing complex, known as the Silicon Heartland, moving forward after initial delays. The project is part of the company's IDM 2.0 strategy and is expected to bolster its manufacturing capabilities amidst a global push for semiconductor self-sufficiency.
Further, Intel announced its intention to spin off its venture capital arm, Intel Capital, into an independent fund. This strategic move is part of Intel's broader strategy to optimize asset value and improve business focus and efficiency.
Analysts from Deutsche Bank (ETR:DBKGn) and UBS have reiterated a Hold rating on Intel's stock, indicating potential cyclical and secular challenges ahead. Despite these challenges, Intel's revenue growth outlook is modest, projecting an increase of 3-5% for the year. Lastly, there has been speculation about Intel potentially being an acquisition target, stirring investor interest in the company. These are among the recent developments shaping Intel's strategic direction and operational efficiency.
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