Tigress Financial Takes Bullish Stance On Intel, Names Multiple Catalysts For Chipmaker

Intel Corporation INTC continues to boast a strong brand equity and a leading position that it can leverage to expand into new opportunities, Tigress Financial said in an upgrade note Thursday.

The Analyst

Tigress Financial Partners' Ivan Feinseth upgraded Intel's stock rating from Neutral to Buy.

The Thesis

Feinseth's bullish case for owning Intel's stock is based on a plethora of factors. (See the analyst's track record here.) 

They are: 

• Intel's business performance continues to see momentum from demand for processors used across data centers, cloud computing, enterprise storage and Internet of Things connectivity.
• The data center group, IoT, non-volatile memory solutions and programmable solutions businesses account for 46 percent of total revenue, up from 44 percent one year ago.
• Intel boasts multiple drivers of growth, including a new line of industry-leading processors for cloud computing and others.
• A continued focus on data centers and cloud processing is contributing to increasing profitability and market share gains.
• A potential supply contract loss with Apple Inc. AAPL in 2020 will "not be material at that time."
• The company's acquisition of Mobileye makes it better positioned to further penetrate the automotive market.
• The balance sheet and free cash flow are sufficient to not only fund growth and R&D, but to enhance shareholder return.

Price Action

Shares of Intel were trading lower by 2.8 percent near the end of Friday's trading session. 

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