Advertisement
U.S. markets closed
  • S&P Futures

    5,206.25
    -8.50 (-0.16%)
     
  • Dow Futures

    39,196.00
    -27.00 (-0.07%)
     
  • Nasdaq Futures

    18,172.25
    -59.25 (-0.32%)
     
  • Russell 2000 Futures

    2,047.20
    -2.60 (-0.13%)
     
  • Crude Oil

    82.56
    -0.16 (-0.19%)
     
  • Gold

    2,164.10
    -0.20 (-0.01%)
     
  • Silver

    25.30
    +0.03 (+0.14%)
     
  • EUR/USD

    1.0875
    -0.0001 (-0.01%)
     
  • 10-Yr Bond

    4.3400
    +0.0360 (+0.84%)
     
  • Vix

    14.33
    -0.08 (-0.56%)
     
  • dólar/libra

    1.2726
    -0.0003 (-0.02%)
     
  • USD/JPY

    149.2100
    +0.1120 (+0.08%)
     
  • Bitcoin USD

    65,936.20
    -1,741.43 (-2.57%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,722.55
    -4.87 (-0.06%)
     
  • Nikkei 225

    39,453.09
    -287.35 (-0.72%)
     

What Do Analysts Think About Intel After Tower Semiconductor Deal

  • Analysts had mixed views on Intel Corp (NASDAQ: INTC) after yesterday's reports about Intel nearing a deal to acquire Tower Semiconductor Ltd (NASDAQ: TSEM) for $6 billion.

  • Northland analyst Gus Richard said such a deal would "make a lot of sense" and be a good one for Intel shareholders based on his estimate that it would cost $13 billion -$15 billion to replace the Tower foundry network.

  • Intel "failed the last time it tried to become a foundry," and it needs to learn how to work with foundry customers, develop process design kits, expand its IP portfolio, and develop a broader breadth of process technology. Tower "possesses all of these capabilities," argues Richard.

  • He kept an Outperform rating and $62 price target (30.3% upside) on Intel before it confirmed to acquire Tower for $53 per share in cash, representing a total enterprise value of $5.4 billion.

  • Intel's January notebook shipments were down 24% month-over-month, well below Citi's expectation of down 16%, mainly due to component supply constraints, Citi analyst Christopher Danely tells investors in a research note.

  • The analyst sees this as "another red flag" after Intel stated it saw an inventory correction in the notebook end market during its last earnings call.

  • He believes PC sales "will cool off" in 2022 due to a reversion to the mean after two straight years of double-digit growth.

  • Danely reiterated a Neutral rating on the shares with a $55 price target (15.6% upside).

  • Price Action: INTC shares traded lower by 0.19% at $48.35 in the premarket on the last check Wednesday.

Latest Ratings for INTC

Jan 2022

UBS

Maintains

Neutral

Jan 2022

Credit Suisse

Maintains

Outperform

Jan 2022

Mizuho

Maintains

Neutral

View More Analyst Ratings for INTC
View the Latest Analyst Ratings

See more from Benzinga

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Advertisement