Intel Stock Slides Over 11% Following Q3 Earnings and Downgrades

By Sam Boughedda

Investing.com — Intel Company (NASDAQ:) inventory has fallen as a lot as 11.8% on Friday to ranges not seen since January.

The decrease open was in response to the corporate’s third-quarter earnings. Whereas it posted comparatively secure numbers, the corporate’s income and knowledge middle gross sales fell brief. It additionally warned that its gross margin and free money stream would fall over the subsequent two to a few years because it invests in analysis and growth and builds new factories.

Intel shares fell round 8% after hours Thursday and opened up Friday at $50.39 however at the moment are buying and selling across the $49.38 stage.

Its earnings additionally triggered a flood of downgrades and cheaper price targets, which helped enhance the stress on its shares. 

Analysts at UBS, Morgan Stanley, and Mizuho downgraded the inventory.

UBS reduce Intel to impartial from purchase, with analyst Timothy Arcuri decreasing the worth goal to $58 from $73, saying that its surprising disclosure across the new long-term monetary mannequin pushes out its free money stream restoration.  

Mizuho analyst Vijay Rakesh mentioned Intel’s capital-intensive foundry shift provides “uncertainty.” Rakesh downgraded Intel from purchase to impartial, reducing the worth goal to $55 from $70. 

Morgan Stanley analyst Joseph Moore lowered his agency’s value goal on Intel inventory to $55 from $67, downgrading the corporate to equal weight from chubby. Moore mentioned the quarter was nice, and the product pipeline is robust, however the progress forecast appears difficult.

A string of different analysts lowered value targets on Intel, together with Citi, which dropped their PT to $52 from $57, Goldman Sachs lowered Intel’s value goal to $44 from $51, BMO Capital lowered their value goal to $60 from $70, and Truist decreased their value goal on Intel shares to $52 from $60.