Truist maintains Intel stock Hold rating with $21.00 target

Published 01/04/2025, 13:58
Truist maintains Intel stock Hold rating with $21.00 target

Tuesday, Truist Securities maintained its Hold rating on Intel Corporation (NASDAQ:INTC) with a price target of $21.00. The firm’s analyst, commenting on the recent public appearance of Intel’s new CEO, Lip-Bu Tan, at Intel Vision 2025, acknowledged the positive direction of the company under its new leadership. With a market capitalization of $98.12 billion and annual revenue of $53.1 billion, Intel faces significant challenges, including negative profitability over the last twelve months. The analyst noted that the keynote delivered by Tan was the most constructive message from Intel they had encountered.According to InvestingPro analysis, Intel currently maintains a FAIR financial health score, with analysts projecting a return to profitability in 2025. Subscribers can access 12+ additional exclusive insights about Intel’s financial position and growth prospects.

During the event, which marked Tan’s first public appearance since assuming the CEO role two weeks prior, he emphasized the importance of establishing a strong company culture. Tan’s focus on creating a "day-1 startup culture" and a culture of innovation was highlighted as a significant shift from previous leadership. The analyst reflected on past concerns regarding Intel’s culture in a note from December 2, 2024, following the departure of the prior CEO, suggesting that the new approach could be a positive change for the company, particularly as Intel faces challenges with cash burn and aims to improve its negative free cash flow yield.

Tan also addressed Intel’s relationship with its customers, expressing a commitment to improving customer satisfaction. The CEO’s strategy involves soliciting feedback, acknowledging past product shortcomings, and striving to rebuild trust through a policy of under-promising and over-delivering.

Additionally, Tan’s presentation put a spotlight on Intel’s internal focus, particularly on engineering. He underlined the importance of making Intel an engineering-focused company again, with the goal of recruiting and retaining top engineering talent to foster growth and innovation.

The analyst concluded that while the recent keynote does not form the basis for an upgrade in the stock rating, the fresh approach to Intel’s culture and customer relations, along with a renewed emphasis on engineering, was a refreshing development for the company.

In other recent news, Intel Corporation has completed a significant $1.9 billion asset sale to SK hynix (KS:000660), marking the final phase of its NAND memory business divestiture. This strategic move allows Intel to concentrate on its core operations and emerging technologies. At the Intel Vision 2025 event, CEO Lip-Bu Tan discussed the company’s future direction, emphasizing advancements in areas such as cloud computing and artificial intelligence. KeyBanc Capital Markets maintained its Sector Weight rating on Intel, with a price target of $23, following the event.

Additionally, Intel’s Board of Directors will see changes as three members, Omar Ishrak, Tsu-Jae King Liu, and Risa Lavizzo-Mourey, retire and will not seek reelection. This development was confirmed in a recent SEC filing. Furthermore, Lip-Bu Tan has officially begun his tenure as Intel’s CEO, expressing enthusiasm for the challenges and opportunities ahead. Lastly, Nvidia (NASDAQ:NVDA)’s CEO, Jensen Huang, clarified that the company is not involved in any consortium to acquire a stake in Intel, dispelling any related rumors.

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