Computer processor maker Intel Corporation (INTC) on Thursday saw its rating and price target cut by analysts at Goldman Sachs. The firm said it downgraded INTC from “Neutral” to “Sell” and lowered its price target from $21 to $20. That new target suggests a potential 16% downside to the stock’s Wednesday closing price of $23.88.
Goldman said it made the move based on Intel’s valuation and possibility of excess supply of its computer chips. The analyst noted it believes that stock’s 22% jump in the past month is unjustified, since the company faces supply, competitive, and capital expenditure headwinds.