Intel price target cut to $34 from $45, maintains hold rating By Investing.com

On Wednesday, Stifel adjusted its outlook on Intel Corporation (NASDAQ: NASDAQ:), reducing the price target to $34 from the prior $45, while keeping a Hold rating on the stock. Intel recently made a disclosure through an 8-K filing that the U.S. Commerce Department has withdrawn certain export licenses for Client-side CPUs to Huawei. Despite this development, Intel has kept its second-quarter revenue forecast between $12.5 billion and $13.5 billion, although it now anticipates revenue to fall below the midpoint of this range.

The company still expects to see a year-over-year increase in revenue and earnings per share (EPS) for 2024. Following the latest developments, Stifel has slightly revised downward its estimates for Intel’s performance in 2024. The adjustment in the price target reflects the updated expectations and the recent license revocation impact on Intel’s business operations with Huawei.

Intel’s confirmation of the license revocation comes at a time when the company is navigating a complex global trade environment. Despite the setback with Huawei, Intel’s reaffirmation of its overall revenue and EPS growth for 2024 suggests a level of resilience in its broader business strategy.

The maintained Hold rating by Stifel indicates a neutral stance on Intel’s stock, implying that the firm sees neither a compelling reason to buy nor sell the shares at this time. Investors may view the revised price target as a recalibration of expectations in light of the recent regulatory action and its potential effects on Intel’s export capabilities.

The market is expected to continue monitoring Intel’s performance closely, especially concerning its ability to adapt to regulatory changes and maintain its growth trajectory as projected for the upcoming year.

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