Summary:
- Intel faces significant challenges in securing external customers for its foundry operations, with plans to balance by 2027.
- Analysts' average price target for Intel implies a slight downside, while GuruFocus estimates suggest potential upside.
- The current consensus rating from brokerage firms indicates a "Hold" status for Intel.
Intel Corp (INTC, Financial) is facing notable headwinds as it navigates the intricacies of expanding its foundry operations. During a recent discussion, CFO David Zinsner shed light on these complexities, affecting investor sentiment and causing Intel shares to dip by 4%. Although progress is evident, the company still struggles to secure substantial external customer commitments. Intel remains optimistic, aiming for its foundry business to reach equilibrium by 2027. The Panther Lake milestone, marking the first 18A product launch, is anticipated by the end of this year.
Wall Street Analysts Forecast
Analyst perspectives on Intel's future appear mixed. According to one-year price targets from 31 analysts, the average target price for Intel Corp (INTC, Financial) stands at $21.26. This range includes a high estimate of $28.30 and a low of $14.00. At the current price of $21.65, this average target implies a potential downside of 1.78%. For a more comprehensive analysis, additional estimate data is available on the Intel Corp (INTC) Forecast page.
Further reflecting the cautious outlook, the consensus recommendation from 47 brokerage firms rates Intel Corp (INTC, Financial) with an average recommendation of 3.1, denoting a "Hold." This rating is based on a scale where 1 indicates a "Strong Buy" and 5 suggests a "Sell" recommendation.
Despite the mixed analyst opinions, GuruFocus offers a more optimistic view with its estimated GF Value for Intel Corp (INTC, Financial) in one year, calculated at $23.51. This suggests a potential upside of 8.61% from Intel’s current price of $21.6453. The GF Value is GuruFocus' assessment of the stock's fair trade value, derived from historical trading multiples, as well as past growth and future business performance estimates. For further insights, detailed data is accessible on the Intel Corp (INTC) Summary page.
