Why Intel (INTC) Is Gaining Today

NEW YORK (TheStreet) -- Intel (INTC) gained 0.9% to $26.76 Wednesday following an upgrade to "outperform" from "market perform" from BMO Capital Markets.

BMO raised its price target for the chipmaker to $31 from $21. Analysts Ambrish Srivastava, Gabriel Ho, and Kulin Patel wrote that they "like the new pragmatism at the top" of Intel. The note there is more consistency in Intel's messaging, and are "encouraged by the stabilization trends in the PC market."

The BMO analysts estimate Intel will see earnings per share of $2.15 by calendar year 2015.

This upgrade comes a day after JPMorgan upgraded Intel to "overweight," and a day before the chipmaker's quarterly earnings report.

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 some important positives, 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, attractive valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • INTC's revenue growth has slightly outpaced the industry average of 9.7%. Since the same quarter one year prior, revenues slightly increased by 0.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • Although INTC's debt-to-equity ratio of 0.24 is very low, it is currently higher than that of the industry average. To add to this, INTC has a quick ratio of 1.65, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for INTEL CORP is currently very high, coming in at 76.84%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.87% is above that of the industry average.
  • Net operating cash flow has increased to $5,731.00 million or 11.34% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.34%.

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