Intel (INTC, Financial) has made a strategic move by agreeing to sell a 51% stake in its Altera division to Silver Lake. The transaction values Altera at $8.75 billion. This decision aligns with Intel CEO Lip Bu Tan's strategy to realign the company's focus towards its core operations.
In conjunction with this deal, Raghib Hussain has been appointed as the CEO of Altera, with his tenure beginning on May 5. This leadership change is seen as part of Intel's broader effort to streamline its portfolio under new strategic guidance.
Investment firm Stifel has maintained a Hold rating on Intel following the announcement. Stifel interprets this development as a positive step for Intel, indicating potential for future growth. Eyes now turn to Intel's upcoming Foundry Direct event on April 29, which might serve as a significant catalyst for the company following its earnings report.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 32 analysts, the average target price for Intel Corp (INTC, Financial) is $22.86 with a high estimate of $31.00 and a low estimate of $17.70. The average target implies an upside of 12.73% from the current price of $20.28. More detailed estimate data can be found on the Intel Corp (INTC) Forecast page.
Based on the consensus recommendation from 46 brokerage firms, Intel Corp's (INTC, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Intel Corp (INTC, Financial) in one year is $27.13, suggesting a upside of 33.79% from the current price of $20.2788. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Intel Corp (INTC) Summary page.
