CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We trim our 12-month target to $45 from $50, on P/E of 18.8x our ’25 EPS view, near peers/above historical. We adjust our ’24 EPS to $1.45 from $1.94 and ’25 to $2.40 from $2.69. INTC posts Q4 EPS of $0.54 vs. $0.15, beating the $0.45 consensus. Revenue rose 10%, above our view, as growth in Client Computing (+33%) was partly offset by declines in Data Center and AI (-10%) as well as Network and Edge (-24%). Gross margin expanded 5 percentage points to 48.8%, on cost efficiencies and improving utilization. Soft Q1 sales/margin guide ($12.7B/44.5% at mid-point; consensus at $14.2B/45.1%) reflects greater-than-expected seasonality as well as PSG/Mobileye/foundry weakness, but we think competitive pressures/wallet share loss remain a major issue within data center servers. We like prospects tied to foundry services (new customers/UMC partnership), margin expansion, cost cuts ($10B by ’25 end), and ability to act as a geopolitical hedge. We see limited upside to AI PCs but see server builds improving through ’24.