Intel (INTC) Stock Down, KeyBanc Raises Price Target
NEW YORK (TheStreet) -- Shares of Intel (INTC) - Get Report are down 0.46% to $32.60 in early afternoon trading, even though the company's price target was raised this morning to $37 from $35 at KeyBanc.
This price hike comes after the firm's quarterly Asia supply-chain findings left them "incrementally more positive" on the Santa Clara, CA-based chipmaker, according to an analyst note.
"Lean PC inventory levels, above-seasonal Q3 demand outlook prompt higher estimates on INTC," they wrote.
BlueFin Research Partners, an equity research firm that tracks Intel shipments of "process materials," came to the same conclusion, according to Barron's: "Intel has completed a phase of clearing inventory."
The research firm believes June production at Intel was up 5%-6%, putting it above forecast. "This increased production exiting the quarter suggests that INTC is likely finished depleting inventories after the significant WIP build in Q2," BlueFin said.
Additionally, BlueFin has already seen signs of improvement for July PC shipments.
"We believe investment at these levels will reward investors as we expect Data Center to pick momentum in the back half of the year, while concerns of further PC deterioration are waning," BlueFin concluded.
Separately, 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 articles's author. TheStreet Ratings has this to say about the recommendation:
We rate INTEL CORP as a Buy with a ratings score of B+. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, 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. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
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