- Shares of Intel Corporation (NASDAQ: INTC) have been volatile in 2015 and are down 5 percent year-to-date.
- Credit Suisse’s John W. Pitzer maintained an Outperform rating on the company, with a price target of $40.
- Intel’s diversification strategy has enabled the company to reduce its dependence on the PC business, Pitzer stated.
Intel is currently executing a diversification strategy aimed at reducing its dependence on PCs. The company, at its annual Investor Day, reported in-line financial metrics with CY16 DCG revenue growth of 15 percent and an additional $800 million reduction in its Mobile losses for the year.
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Analyst John Pitzer mentioned that Intel now generates about 40 percent of its revenues and 65 percent of its operating income from its non-PC business. This compares with the four year ago level of 34 percent revenues and 15 percent operating income from the non-PC business.
“While operating leverage was perhaps less than we hoped in CY16 – with much of the Mobile savings being re-invested in DCG, IoTG and tech development – we continue to see INTC’s willingness to de-emphasize “financial-engineering” to focus on investment and innovation as a strength, not a weakness,” Pitzer wrote.
Intel’s Silicon continues to be a foundational technology with barriers to entry which make it a unique asset, the analyst said, while adding that the company continues to have a longer term earnings power over $4.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.