Intel (INTC) is likely to see “modest” outperformance in Q4, but could miss Q1 consensus amid multiple headwinds, BofA Securities said in a Tuesday note.
While BofA forecasts Q4 to be in line with or slightly ahead, with projected figures of $15.1 billion in sales and 46.5% gross margin, it expects a miss in Q1, pointing to headwinds such as Mobileye outlook cut, PC seasonality, weak industrial/auto, networking and muted enterprise.
“We tweak down Q1 and CY24 sales, but believe the GM trajectory could surprise to the upside as INTC benefits from its cost restructuring actions, leading to higher EPS,” BofA said.
The brokerage reiterated its neutral rating on Intel with a price objective of $50.