This story has been updated from 11:22 am EDT with additional information.
Bank of America/Merrill Lynch (BAC) reiterated its "buy" rating on the stock and maintained its $36 price target. "From Sep 9-11, Intel hosts its 14th annual developer's forum (IDF) where we expect Intel to convey its resolve to lead the nascent Internet of Things (IoT: wearables, industrial, autos, consumer) market," the firm wrote in a research note Monday.
"There will be updates on traditional PC, data center and mobile, but key Day One sessions are devoted to IoT. We maintain Buy and a top pick on Intel as we believe it remains under-owned, and as Street underestimates the $3+ in EPS power as PCs stabilize, mobile losses are reduced and data center dominance continues. We expect IDF to sets Intel's agenda and reinforce the value in its leading edge manufacturing, scale, software and security assets," the firm added.
At last check, the stock was up 0.73% to $35.25.
Intel said last month that the forum, set in San Francisco, "is all about the technology developers in attendance: their opportunities, their creations and ideas, and the benefits of joining the millions of developers worldwide who participate in the Intel architecture ecosystem."
TheStreet's Chris Ciaccia will be on the ground at Intel's conference this week.
One thing investors do know -- Intel is placing bets on wearable devices. It announced on Friday that it had partnered with Fossil (FOSL) to "identify, support and develop emerging trends in the wearable technology space," specifically for the fashion industry, according to a press release. Intel was also present at New York boutique Opening Ceremony's Spring/Summer 2015 fashion show over the weekend to introduce a smart bracelet for women created by the two called MICA, "My Intelligent Communication Accessory," for women. The bracelet will be available at select Barney's and Opening Ceremony stores in time for holiday 2014.
Fossil will also work closely with Intel Capital, Intel's global investment organization, to "identify and evaluate co-investments in emerging technologies to accelerate industry innovation and stay at the forefront of the wearable consumer trend." Intel Capital has already invested start-ups in the wearables space, including Thalmic Labs and Basis, it said.
In addition to Bank of America Merrill Lynch, here's what Credit Suisse had to say about this week's event.
John Pitzer, Credit Suisse (Outperform; $30 PT)
Despite a strong schedule of keynotes and IR Meetings with [senior executives], we expect limited new news at IDF and look to the Analyst Day in November to be more impactful especially relative to 2015 GM and CapEx guidance.
Our ongoing analysis continues to suggest that investors are under-modeling INTC's EPS potential - and we are more confident that the operating model is nearing an inflection, which could drive better-than-expected OpM leverage. Specifically, we are raising our $3.00 EPS potential to $4.00. Upside to our EPS potential is driven by: (1) AT LEAST flat operating profits/EPS in PCCG [PC Client Group] even in a flat to down PC unit market; (2) UPSIDE to DCG [datacenter group] based on improving macro, new products and structural growth drivers (Big Data); (3) new found confidence in AT LEAST break-even in MCG [mobile communications group] with POSITIVE EPS from tablet APs and discrete basebands; (4) larger-than-expected SAM in IOTG and SSD (largely ignored by investors); and (5) EPS accretion from share repurchase. Underpinning our analysis is a key dynamic mostly missed by investors - INTC's ability to drive IP developed in PCCG (silicon, firmware, peripherals, manageability, security and ecosystem) into every other division with SIGNIFICANT OPM LEVERAGE especially as INTC seems to be operating at PEAK investment levels.
Separately, TheStreet Ratings team rates INTEL CORP as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTEL CORP (INTC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and reasonable valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."You can view the full analysis from the report here: INTC Ratings Report
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