Wedbush analysts remain ‘Neutral’ on Intel Corp (NASDAQ:INTC, ETR:INL) but have nudged their target price on the stock up by $1 to $20 per share ahead of the chipmaker’s third quarter financial results on October 23.
“While we struggle to justify the company's recent surge in valuation, we also are reluctant to shift our opinion on the stock into an earnings period where Intel's results/outlook should show improvement," the analysts wrote in a note to clients on Wednesday.
They believe Intel’s financial results and guidance should exceed consensus forecasts due to the better-than-expected industry environment.
The analysts cautioned, however, that Intel's valuation appears “unsustainably rich” as measured by its historic comparisons, as the company’s stock price has benefited from a few notable investments recently, including the US government, Nvidia, and SoftBank.
Wedbush’s equity research team view the deals as having bolstered the company’s balance sheet and created investor optimism but also have not really changed the prospects for its business.
Intel shares fell nearly 5% to $36.36 in midday trading on Wednesday.