Intel Reactions: Barclays Sees 'Washed Out' Stock, Weak Upside

In a report published Wednesday, analysts at Barclays maintained their Equal-Weight rating on Intel Corporation INTC, along with the price target of $32. The company reported 1Q results mostly in-line with its lowered guidance, while guiding to Q2 revenues marginally below the consensus.

Although gross margins for Q1 were higher than expected, the company has lowered its full-year gross margin guidance from 62 percent to 61 percent due to lower 22nm utilization and 10nm startup costs in 2H. Revenue for 2015 is likely to be flat year-over-year, although Intel believes that the launch of Win10 in 2H could prove to be a catalyst.

Related Link: Intel Q1 Earnings Meet Views

The PC segment has been performing below expectations in 2015, although the remaining segments have been reporting results largely in line with expectations. However, the improving gross margins lower taxes could offset the revenue and yield.

"The stock may seem washed out here and could attract some interest if there are sell-offs elsewhere, but we don't see a strong upside case and remain on the sidelines," the analysts said.

Shares were up 3 percent in Wednesday's pre-market session, after falling about 0.75 percent in Tuesday's regular session. Shares are down 13 year-to-date.