Intel Corporation’s INTC stock is likely to be supported by the company’s improving execution, planned buyback and growth in total addressable market, according to Bank of America.
The Analyst
BofA’s Vivek Arya maintained a Buy rating on Intel, keeping the price target at $65.
The Thesis
Intel’s execution is improving, especially after the company delivered a massive third-quarter beat, Arya said in the note.
Management has initiated a record buyback program, worth $20 billion over for next five to six quarters. Arya cited the other positives as Intel’s incumbency, portfolio breadth and large US manufacturing base, while adding that the company also had new opportunities in 5G and autos.
Under the leadership of CEO Bob Swan and CFO George Davis, Intel has become “laser focused on cost discipline and meeting product deadlines,” the analyst wrote. He added that the company had become more open to partnering with third-party vendors to improve time to market and already had a “multi-year product/process node roadmap.”
Intel plans to increase capacity in 2020 to recapture the lower end of the market for personal computers. The company also plans to rebuild its inventory buffer to respond quickly to changes in end demand, Arya mentioned.
Share Action
Shares of Intel were trading down 0.42% at $56.29 Friday.
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