Market Overview

UPDATE: Pacific Crest Upgrades Intel on Strong Forecasts of PC, Grantley Server & Foundry Business

Related INTC
Is Intel Corporation's Pullback The Start Of A Major Sell-Off?
3 Semiconductor ETFs That Continue To Shine
Frustrated at Work? You Might Be the Next Jobs (Fox Business)

In a report published Monday, Pacific Crest Securities analyst Michael McConnell upgraded Intel (NASDAQ: INTC) from Sector Perform to Outperform and established a $31.00 price target.

McConnell reported that supply chain conversations suggest an acceleration in corporate demand of PC OEM orders in the first quarter. Forecasts indicate that this demand will continue into the second quarter.

The analyst added that the upcoming Grantley server platform is “positioned to reaccelerate spending at traditional IT customers and serve as a likely driver for Intel's high-margin DCG business next year.” Grantley will offer improvements including DDR4 memory support, four lanes of 10 gigabit Ethernet support, improved energy efficiency, and greater floating point capability.

Pacific Crest noted future success in Intel's nascent foundry business will assist the company to “lengthen its manufacturing lead, consolidate the industry's leading-edge manufacturing base, and drive a higher multiple for its stock.” McConnell commented that Intel has three main foundry challenges including direct competition with potential ARM-based customers, the lack of evidence showing long-term commitment to foundry service, and the lack of tools and support to customers compared to TSMC. The analyst expects the company to overcome these disadvantages over time.

Shares of Intel closed at $26.16 on Friday and are currently up 2.06 percent at $26.70.

Latest Ratings for INTC

DateFirmActionFromTo
Aug 2014JP MorganMaintainsOverweight
Jul 2014B RileyUpgradesNeutralBuy
Jul 2014UBSUpgradesNeutralBuy

View More Analyst Ratings for INTC
View the Latest Analyst Ratings

Posted-In: Michael McConnell Pacific Crest SecuritiesAnalyst Color Upgrades Price Target Analyst Ratings

 

Related Articles (INTC)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters