Here's a Reason Why Intel (INTC) Stock Is Up Today

Intel (INTC) stock is advancing after Cowen & Co contended that the company's design win for Apple's (AAPL) iPhone 7 could prove better than expected.
By Rachel Graf ,

NEW YORK (TheStreet) -- Shares of Intel (INTC) - Get Report are rising 1.16% to $34.40 in early-afternoon trading on Monday after Cowen & Co.'s channel checks indicated that the company's design win for the 7360 modem in Apple's (AAPL) iPhone 7 could be in more than half of the phone's units.

This would be between roughly 100 million and 110 units for Intel, or more than double the firm's previous expectation of 25% share for the technology giant, Barron's reports.

Cowen & Co. estimates the deal should add about $850 million incremental operating profit for Intel, or per-share earnings of 17 cents on $1.5 billion in incremental revenue spread across 2016 and 2017, Barron's notes.

"While this is certainly a meaningful number, the psychological effect for INTC is even greater as it opens up an entirely new non-CCG narrative," the firm said.

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B+.

Intel's strengths such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, reasonable valuation levels and increase in net income outweigh the fact that the company shows weak operating cash flow.

You can view the full analysis from the report here: INTC

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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