Intel Upgraded - KeyBanc Touts New Markets and Products

Intel is "the best-positioned company to take advantage of the next wave of compute," a KeyBanc analyst wrote in upgrading the stock to overweight.
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Intel  (INTC) - Get Report was upgraded to overweight from sector weight at KeyBanc as analyst Weston Twigg expressing optimism about the long-term outlook at the No. 1 U.S. chipmaker.

Twigg affirmed his share-price target at $82. The target indicates 38% potential upside from the Santa Clara, Calif., company's closing price on Friday.

"We view Intel as the best-positioned company to take advantage of the next wave of compute, beyond PCs, phones and tablets,” Twigg wrote in a commentary cited by StreetInsider.com.

“The company is aggressively tackling new markets; quickly launching products on 10 [nanometers]; and unifying chips, software, and developers."

Intel is “staging its comeback,” after struggles in recent years, Twigg said, according to Bloomberg. “A change in investor perspective is due.” 

He said the company is “focused on maximizing its opportunities beyond the PC.”

In April, Intel reported first-quarter adjusted earnings of $1.45 a share, a 63% increase from a year earlier, on revenue of $19.8 billion, a 23% increase. 

Analysts were expecting the company to report earnings of $1.28 a share on revenue of $18.7 billion.

For the second quarter, though, the company said it expected revenue of $18.5 billion and earnings of $1.10 a share. Analysts were expecting revenue of $17.97 billion and earnings of $1.19.

Morningstar analyst Abhinav Davuluri wrote a bullish report after that news. “We look forward to a bevy of 10-nanometer product ramps throughout 2020,” he said.

Intel shares recently traded at $59.16, down 0.3%. The stock has gained 9% over the past three months, compared with an 11% climb for the S&P 500.