NEW YORK (TheStreet) -- Intel Corporation (INTC) has been upgraded to "outperform" from "sector perform" at Pacific Crest due to its improving corporate PC demand this year and expectations Intel's upcoming Grantley server platform will spur spending at traditional IT customers in 2015.
A call option on foundry share gains over the long term, which could also lead to multiple expansion, was another reason the firm upgraded the technology company's rating. Currently, Pacific Crest has a $31.00 price objective on the stock.
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 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 solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was 12 months ago, this stock has enjoyed a nice rise of 25.46% which was in line with the performance of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, INTC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 5.2%. Since the same quarter one year prior, revenues slightly increased by 2.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Although INTC's debt-to-equity ratio of 0.23 is very low, it is currently higher than that of the industry average. To add to this, INTC has a quick ratio of 1.75, 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 75.56%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 18.97% trails the industry average.
- You can view the full analysis from the report here: INTC Ratings Report