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On Tuesday, Bernstein SocGen Group analysts adjusted their outlook on Intel Corporation (NASDAQ:INTC), lowering the price target from $25.00 to $21.00 while maintaining a Market Perform rating. The revision reflects a tempered expectation for the company’s growth, particularly in the PC market. InvestingPro data shows Intel’s challenging position, with the company reporting a significant $15.7 billion negative free cash flow and revenue decline of 2.1% over the last twelve months.
The analysts noted a potential short-term upside for Intel due to tariff dynamics that might lead to a pull-forward or channel fill in the first half of the year. However, they anticipate this to be followed by a channel flush in the second half. The analysts have also adjusted their 2025 PC growth assumptions from low single-digit growth to flat year-over-year. With a market capitalization of $82.2 billion and current financial health rated as ’Weak’ by InvestingPro, the company faces significant challenges ahead. Subscribers can access 12+ additional exclusive ProTips and comprehensive analysis through the Pro Research Report.
Stacy Rasgon of Bernstein SocGen Group commented on the challenges faced by Intel’s new management, including navigating a competitive environment and margin risks. The company’s gross profit margin stands at 34.3%, while operating without dividend payments to shareholders. Rasgon mentioned that the current strategy seems to follow the path set by the previous leadership, focusing on product development, foundry business, and trying to launch the 18A process node.
The analyst expressed skepticism about the stock’s appeal to investors due to the pull-forward narrative and highlighted the external pressures such as tariffs affecting key end-market products. The competitive landscape remains harsh for Intel, and the analyst sees little to no AI narrative that could potentially support the company’s stock.
Concluding the commentary, Rasgon suggested that Intel’s stock appears to be driven more by event-based narratives at this stage and advised avoiding it. The new price target of $21.00 reflects the analyst’s cautious stance on the company’s near-term prospects.
In other recent news, Intel Corporation has been the focus of several notable developments. The company announced the sale of a 51% stake in its subsidiary, Altera, to private equity firm Silver Lake, valuing Altera at $8.75 billion. This valuation is significantly lower than the $16.7 billion Intel paid for the company in 2015. The transaction is part of CEO Lip-Bu Tan’s strategy to focus on core business areas and is expected to be finalized in the second half of 2025. Analysts from Raymond (NSE:RYMD) James, BofA Securities, and Needham maintain neutral or hold ratings on Intel stock following the sale, with BofA setting a price target of $25. Meanwhile, Cantor Fitzgerald reduced its price target for Intel to $20, citing potential weaker performance in upcoming guidance. Conversely, Susquehanna raised its price target to $24, expecting Intel’s first-quarter results to align with expectations. Analysts from Susquehanna also noted potential gains in the desktop CPU market and Intel’s upcoming Panther Lake product, which could improve margins in 2026.
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