NEW YORK (TheStreet) -- Shares of Intel (INTC) - Get Intel Corporation (INTC) Report were gaining 1.2% to $28.77 Monday after following positive analyst notes from NorthlandCapital and Canaccord Genuity.
Northland Capital upgraded the chipmaker's stock to "outperform" from "market perform" on Monday, setting a price target of $32. Northland analyst Gus Richard said Intel's acquisition of Altera (ALTR) - Get Altair Engineering Inc. Class A Report will help increase the chipmaker's 2016 earnings by 5 cents to 10 cents a share, according to TheFlyOnTheWall.com.
The analyst also said the new 3D Xpoint memory Intel developed through a partnership with Micron Technologies MU is potentially a "game changer," and could give the company an advantage over competitors.
In a separate note Canaccord analysts Matthew D. Ramsay and Steven Lee said they are "increasingly confident" in Intel's Data Center Group growth following the company's Data Center Day and the Hot Chips Industry conference in Cupertino.
"We left the meetings with increased confidence in long-term 15% CAGR DCG growth targets as Intel's core cloud server growth potential is supplemented by innovation and market share gains potential in memory, silicon photonics, networking, and other markets," Ramsay and Lee wrote.
Canaccord maintained its "buy" rating and $39 price target for Intel.
TheStreet Ratings team rates INTEL CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTEL CORP (INTC) a BUY. This is driven by multiple 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 largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- INTC's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, INTEL CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- The gross profit margin for INTEL CORP is currently very high, coming in at 78.60%. Regardless of INTC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 20.50% trails the industry average.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 11.2%. Since the same quarter one year prior, revenues slightly dropped by 4.6%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- You can view the full analysis from the report here: INTC Ratings Report