Deutsche Bank Maintains Buy Rating on Intel After McAfee Purchase (INTC)

Deutsche Bank reiterated its Buy rating on shares of Intel (NASDAQ: INTC) after the company acquired security software company McAfee. Deutsche Bank maintains a $25 Price Target on Intel.

Deutsche Bank concedes that "While the McAfee deal surprised most semi investors, Intel believes the deal is strategically consistent with the co's goal to leverage its "core x86" capabilities and very different from failed attempts to build new "core capabilities" a decade ago (Comm IC deals)."

Deutsche Bank analysts "believe Intel remains well positioned in its traditional markets and view the company's growth initiatives as a call option not currently reflected in its historically low valuation (P/E 10x)."

Intel Corporation is a semiconductor chip maker, developing advanced integrated digital technology products, primarily integrated circuits, for industries, such as computing and communications. Shares are trading slightly higher this afternoon, to $18.19.