TECH - Is Intel A Sleeping Giant Or Stuck In Neutral? Analyst's Latest Take Sheds New Light | Benzinga
BofA analyst Vivek Arya reiterated a Neutral rating on Intel Corp (NASDAQ:INTC) with a price target of $50.
The analyst expects a fourth quarter in line and modestly ahead, with $15.1 billion in sales, 46.5% gross margin, and ~$0.45 EPS. He modeled a first-quarter miss with $13.5 billion in sales, down 11% sequentially, well below the consensus decline of 6% sequentially on multiple headwinds, including Mobileye outlook cut, PC seasonality, weak industrial/auto, networking, and muted enterprise.
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Arya noted that the gross margin trajectory could surprise the upside as Intel benefits from its cost restructuring actions, leading to higher EPS. He lowered his calendar 2024 sales to $58.5 billion, +8.5% year-on-year versus +9.7% prior and below consensus $61.3 billion. However, he tweaked the calendar 2024 EPS to $1.48, though still below the $1.82 consensus.
While Intel has laid out a long-term 60% gross margin target, ...