TECH - Analysts Maintain Intel's Rating Unmoved Amid Programmable Solutions Group Spinoff | Benzinga
Rosenblatt analyst Hans Mosesmann reiterated Intel Corp (NASDAQ: INTC) with a Sell and a $17 price target.
Intel shared plans to spin off its Programmable Solutions Group business as a standalone business, giving it flexibility for accelerated growth and helping it to compete more effectively. The move is more tactical than strategic, as Intel is cash-starved, the analyst writes.
Intel mismanaged Altera early on and has only recently begun a reinvestment and focus initiative likely related to the spinoff angle.
The 2-3 year timeline suggests Altera is not strong enough today to be standalone. Otherwise, they would have sold the unit.
The analyst wonders if Altera will shift foundry services back to TSMC. Altera made that ill-fated shift from Taiwan Semiconductor Manufacturing Company Ltd (NYSE: TSM) to Intel 14nm before the Intel acquisition.
The Altera leadership within Intel is non-Altera (Intel), which is not a knock but an angle that does not inspire.
Intel has a tough road ahead. The Street may applaud the IPO spiel, but the fundamentals do not change.
Mizuho analyst Vijay Rakesh maintained ...