Crispr Therapeutics shares tumble after significant earnings miss
On Wednesday, Rosenblatt Securities analyst reaffirmed a Sell rating on Intel Corporation (NASDAQ:INTC), with a price target set at $20.00. Trading at $19.91, InvestingPro analysis suggests Intel is currently undervalued. The firm anticipates Intel to report earnings for the fourth fiscal quarter of 2024 that align with current expectations, which are pegged at $13.8 billion in revenue and Non-GAAP EPS of $0.12, matching both their own and the consensus estimates. The report is scheduled for release after the market closes on January 30, 2025. The company, with a market capitalization of $86 billion, has seen its stock decline by 54% over the past year.
The analyst indicated that the expected results are due to persistently weak PC demand, limited data center sales, and ongoing market share losses in both the PC and Data Center segments. This aligns with InvestingPro data showing negative free cash flow and declining profitability metrics. Looking ahead, Rosenblatt projects a slightly negative tilt for Intel’s first fiscal quarter of 2025, with revenue forecasts at $13.0 billion, slightly above the consensus estimate of $12.9 billion, and Non-GAAP EPS of $0.17, notably higher than the consensus of $0.10. InvestingPro subscribers have access to 8 additional key insights about Intel’s financial health and market position.
The firm’s outlook for Intel is cautious, citing the company’s current state of flux, the potential of missing out on the current Artificial Intelligence (AI) cycle, and facing strong competition along with near-term margin pressures. The lack of confidence in Intel’s future quarter estimates is also highlighted, given these challenges.
Rosenblatt’s analysis points out that Intel is in the process of reassessing its business strategy and is in the midst of searching for a new CEO. This period of transition is expected to extend into the years 2025 and 2026. The reaffirmed Sell rating and $20 price target are based on the combined impact of market share losses in PC and data centers, underdeveloped AI product roadmaps, and delays in manufacturing next-generation process nodes.
In other recent news, former Intel CEO Pat Gelsinger has purchased NVIDIA (NASDAQ:NVDA) stock amid the DeepSeek sell-off, praising DeepSeek as an "incredible piece of engineering" that could prompt greater AI adoption and reshape the industry’s view of open innovation. Meanwhile, Global Equities Research has advised clients to seize the opportunity presented by the current weakness in Intel stock, citing strong prospects for the company’s AI initiatives under its current leadership. In contrast, Cantor Fitzgerald maintained a Neutral stance on Intel shares, with a price target of $22.00.
Northland analysts have upheld their Outperform rating for Intel, with a $28.00 price target. They predict that the company’s results will either meet or surpass fourth-quarter consensus estimates. They also highlighted Intel’s recent strides in its strategic partnerships and investments, including a collaboration with United Microelectronics Corporation (UMC) on a pilot production line in Arizona, which is progressing smoothly.
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 company also announced its intention to spin off its venture capital arm, Intel Capital, into an independent fund, as part of its broader strategy to optimize asset value and improve business focus and efficiency. These are among the recent developments shaping Intel’s strategic direction and operational efficiency.
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