Intel Corporation (INTC, Financial) has finalized an agreement to sell 51% of its interest in Altera, the programmable chip division, to private equity firm Silver Lake. This deal assigns a valuation of $8.75 billion to Altera, which is significantly less than the $16.7 billion Intel originally paid to acquire the business back in 2015.
Bank of America expressed that the current valuation underscores a substantial depreciation since the acquisition. Despite this, the transaction aligns with Intel's strategic focus under CEO Lip-Bu Tan to concentrate on strengthening its core x86 processor operations. Bank of America views this move as a moderate yet positive shift in the company's direction.
Bank of America continues to maintain a Neutral rating on Intel shares, with a price target set at $25. This reflects the belief that while the divestiture is a step towards refining Intel's business focus, there remain broader challenges and uncertainties in the market.
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 12.56% from the current price of $20.31. 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 33.58% from the current price of $20.31. 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.
