UPDATE: Nomura Upgrades Intel Corporation to Neutral, Raises PT on Reasonable Expectations for 2014

In a report published Thursday, Nomura analyst Romit Shah upgraded the rating on Intel Corporation INTC from Reduce to Neutral, and raised the price target from $20.00 to $24.00. In the report, Nomura noted, “While uncertainty is likely to persist, we believe for the first time in a couple years that Intel has set reasonable expectations for the coming year, which should provide support for the stock. In addition, we believe the Datacenter Group (DCG) provides a greater margin of safety than investors may realize. Furthermore, we believe that Intel has meaningful operating leverage that could materialize in 2015. Intel has traded over the past three years at a 15-20% discount to the S&P 500. Going forward, we expect the stock to trade at a smaller discount (10-15% discount) or in the range of 12-14x, implying a share price of $22-26.” Intel Corporation closed on Wednesday at $24.42.