Intel Corp
BofA Securities On Intel
Analyst Vivek Arya reiterated a Neutral rating and price target of $50.
At its new reporting structure event, Intel "disclosed for the first time standalone historical (CY21/22/23) sales and operating profit for its Product (fabless), Foundry (including all internal manufacturing) and Other (Altera, Mobileye, all others) segments," Arya said in a note.
The company pushed out consolidated long-term targets by four years to 2030, he added. "Competition in both Product and Foundry remains threats," and profitability at Foundry "remains key to accretion," the analyst further wrote.
Wedbush On Intel
Analyst Matt Bryson maintained a Neutral rating and price target of $40.
"Under the new structure, Intel Foundry will recognize revenues generated from external foundry customers and Intel Products, as well as development and product manufacturing costs historically allocated to Intel Products," Bryson wrote in a note.
The main concern was around Intel's ambition to achieve 60% gross margins and 40% operating margins in 2030, which is "3-4 years subsequent to Intel's prior expectation," the analyst said. "However, we don't really see the drivers for Intel as changing with the key variable for INTC remaining whether it succeeds with its efforts to restore fab competitiveness," he added.
Cantor Fitzgerald On Intel
Analyst C.J. Muse reaffirmed a Neutral rating and price target of $50.
Intel's new financial reporting structure, which separates Intel Products from Intel Foundry, was aimed at driving "increased cost discipline through greater transparency, accountability, and incentives across the business," Muse said. "We applaud Intel management for the move," he added.
"Of course, this will take time, particularly with Intel's planned manufacturing leadership truly ramping in 2027," the analyst further wrote.
Benchmark On Intel
Analyst Cody Acree reiterated a Buy rating and price target of $62.
"Intel's plan is to drive operating margin improvement by shifting a heavier manufacturing volume percentage to leading-edge extreme ultraviolet (EUV) nodes as the company achieves process parity and leadership," Acree wrote.
"In addition to Intel Foundry's opportunity to manufacture a greater percentage of Intel's Products, the Foundry business currently has earned an expected lifetime deal value with external customers of more than $15 billion and remains focused on its goal of becoming the world's second-largest foundry by 2030," he added.
Truist Securities On Intel
Analyst William Stein maintained a Hold rating and price target of $45.
While the Products business looks more profitable, the Foundry business (IFS) has negative gross and operating margins, Stein said. "Management detailed its path to improved profitability, culminating in 60% GPM / 40% OPM (enterprise) and 40%/30% (IFS) by 2030," he added.
"This quantification is helpful; however, the ramp is a bit slower than what we expected," the analyst further wrote.
Oppenheimer On Intel
Analyst Rick Schafer reaffirmed a Perform rating on the stock.
"Re-organization frames Intel Products - CCG, DCAI, and NEX - as a fabless semi designer untethered from foundry business," Schafer said. "Products can purchase wafers at market prices while Foundry reduces expedites," he added.
The company's gross margins "should begin to improve following 14A launch as foundry reverts to two-year process cadence," the analyst further stated.
INTC Price Action: Shares of Intel had declined by 7.11% to $40.82 at the time of publication on Wednesday.
