intel (INTC 1.30%) Shares rose modestly on Tuesday, rising 2% as of 11:05 a.m. ET amid conflicting moves on Wall Street.
As The Fly reported this morning, investment bank Citigroup lowered Intel’s price target from $22 to $21 per share, while HSBC upgraded the stock from discount to hold.
What Wall Street is saying about Intel today
With Intel’s stock price just below $22 per share, Citi’s new price target suggests the stock will decline over the next 12 months. Citi expects “weaker demand” for PCs, autos and industrial chips this year to be offset by strength in the data center, artificial intelligence and communications markets. All things considered, Citi maintains a neutral view on Intel stock, indicating it believes investors should hold.
HSBC’s view is similar, but worse. Despite raising its stake in Intel’s stock, HSBC only has a $20 price target on Intel’s shares, and the best that can be said about the stock is that it’s down 40% since July of last year, making it quite a stock. It just means that it looks like it’s attached.
Is Intel stock a buy?
HSBC is hopeful that “the worst appears to be over” for Intel, with business turmoil and demand risks factored into the stock, but the bank is not confident that Intel will recover enough to recommend buying the stock. He says he doesn’t have any expectations.
Neither do I.
Intel stock has reported negative operating income for the past three quarters in a row, with a net loss of $16 billion over the past four quarters as the company booked billions of dollars in “one-time” charges to earnings last quarter. It’s approaching. Additionally, despite positive operating cash flow, Intel accumulated $15 billion in negative free cash flow over the past year due to heavy capital expenditures.
Indeed, Intel has taken a kind of sink-sink approach to last quarter’s earnings, piling as much bad news as possible into one quarter to make future quarters look good by comparison. Maybe I did. Indeed, analysts generally expect this to bring Intel to profitability by 2026. But all things considered, Intel still looks like a mess.
I wouldn’t come close.
Citigroup is an advertising partner of Motley Fool Money. HSBC Holdings is an advertising partner of Motley Fool Money. Rich Smith has no position in any stocks mentioned. The Motley Fool has a position in and recommends Intel. The Motley Fool recommends HSBC Holdings and recommends the following options: February 2025 $27 short calls on Intel. The Motley Fool has a disclosure policy.
