Analysts lowered rankings and lowered value targets on Intel Corp (NASDAQ: INTC) following its third quarter 2021 outcomes.
Mizuho Analyst Vijay Rakesh downgraded to Impartial Purchase with a PT of $ 55 from $ 70, implying a 1.79% drop based mostly on Thursday’s closing value of $ 56.00.
In its earnings name, the corporate introduced a big 100% enhance in funding within the foundry, resetting gross margins down over the subsequent two years, Rakesh notes.
The analyst now believes that Intel’s “capital-intensive” foundry change “provides uncertainty to its chance of catching up.” As well as, the margin reset to 51% -53% from the present 56% over 2-3 years “may very well be tough to recuperate,” Rakesh provides.
Morgan stanley Analyst Joseph Moore downgraded to par for the chubby with a PT of $ 55, down from $ 67.
German Financial institution Analyst Ross Seymore lowered the PT to $ 55 from $ 58 and reiterated a maintain observe on shares.
Whereas Intel’s earnings report and forecast had been “barely disappointing,” probably the most vital information was the corporate’s postponement of the corporate’s analyst day to February 2022 and the early unveiling of its 2022 and medium monetary targets. time period, Seymore notes. Monetary metrics yield earnings and money movement “considerably decrease” than Road anticipated.
UBS Analyst Timothy Arcuri downgraded to Impartial from Purchase with a PT of $ 58, from $ 73, implying a 3.6% enhance. The corporate’s “sudden” disclosure relating to the brand new long-term monetary mannequin that features CAPEX and margin trajectory pushes again the restoration of Intel’s free money movement, Arcuri notes.
Arcuri provides, nonetheless, that whereas the gross margin targets of 51-53% for the subsequent 2-3 years will not be nice, neither are they horrible given the vary that some buyers feared.
Barclays Analyst Blayne Curtis lowered the PT to $ 45 from $ 50, implying a 19.6% drop, and confirmed an underweight in shares following final evening’s outcomes.
Analysts’ day could also be delayed, however the disappointment got here early as the corporate set long-term targets exhibiting continued strain on gross margin and ‘spiraling’ capital prices in a probable PC downturn. to an extra lack of market share, Curtis notes.
Value motion: INTC shares traded down 9.63% to $ 50.63 through the pre-market session final test on Friday.