Intel (NASDAQ: INTC) shares have advanced more than 26% since the beginning of January, and the current share price stands around $61. Intel reported better than expected Q4 earnings, and analyst firm Cowen raised its price target from $75 to $79.
Fundamental analysis: Cowen raised its price target on Intel from $75 to $79
Intel shares have been moving in an uptrend since the beginning of the year, supported by the better than expected Q4 earnings. Intel reported Q4 results in January; total revenue has decreased only 1% Y/Y to $20B while Q4 GAAP EPS was $1.42 (beats by $0.38).
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The company raised its Q1 target and announced that it expects revenue of ~$18.6B while the Q1 EPS should be around $1.03. PC-centric business and Data Center Group had stronger than expected performance, and the company hiked its quarterly dividend by 5% to $0.3475.
This company’s fundamentals are very good, but it is important to say that Morgan Stanley reported that Intel would face challenging 2021 amid concerns in manufacturing its new processors. Despite this, Cowen raised its price target on Intel from $75 to $79, while Mizuho assigned a price target of $68.
“Intel’s turnaround has begun, strong beat/raise as PC strength carries into 2021. More important than numbers, incoming CEO Pat Gelsinger emphasized a renewed focus on Intel’s historical strength, with a majority of 2023 products to be internally manufactured based on stronger 7nm progress,” said analyst Matthew Ramsey.
According to the latest news, Google and Intel announced a partnership to help communications service providers to roll out 5G solutions faster.
“Under this partnership, we’ll work closely with Intel in three main areas: accelerating the ability of communications service providers to deploy their Virtualized RAN (vRAN) and Open Radio Access Network (NYSE: ORAN) solutions by providing next-generation infrastructure and hardware, launching new lab environments to help communications service providers innovate on cloud-native 5G, and making it easier for them to deliver business applications to the network edge,” said Google Cloud’s vice president and general manager of Networking Shailesh Shukla.
Intel is fairly valued at the current stock price, and it could deliver strong shareholder value for many years to come.
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Technical analysis: $55 represents a strong support level
Intel shares have been moving in an uptrend since the beginning of 2021, and for now, there is no signal of the trend reversal.
The important support levels are $55 and $50; $65 and $70 represent the resistance levels. If the price jumps above $65, it would be a signal to trade shares, and the next target could be around $77, but if the price falls below the $55 support level, it would be a firm “sell” signal.
Summary
Intel reported better than expected Q4 earnings; the company raised its Q1 guidance and announced that it expects revenue of ~$18.6B. Analyst firm Cowen raised its price target on Intel to $79, and this company could deliver strong shareholder value for many years to come.
