Analysts Seeing Upside to Intel Corporation (NASDAQ:INTC)

Several analysts have recently weighed in on Intel Corporation (NASDAQ:INTC), issuing notes to investors. Doug Freedman OF RBC Capital reiterating their Hold rating on the stock yesterday with a $40.00 price target, or 11.27% upside to the last closing price. According to Tip Ranks, Doug Freedman is ranked 14 out of 3448 analysts. The stocks he covers yield an average of 24.6% growth in the one year following his recommendations.

Ian Ing of MKM Partners also released a note to investors today Upgrading the firms Buy stance on IIntel Corporation (NASDAQ:INTC).

“We think INTC is in front of a major data center spending cycle driven by: (1) cloud service infrastructure; (2) acceleration into the era of big data analytics/Hadoop platforms requiring multiple servers; and (3) well-timed supplier roadmaps giving abundant reasons to upgrade, as the Grantley server launch is followed by other supplier refreshes (BRCM’s Tomahawk switching, MSFT Server 2003 obsolescence). INTC has demonstrated a flexible and determined approach to succeed in new markets (tablet contra-revenue, Rockchip+Spreadtrum partnerships access China channel).”

Ian Ing also added, “We believe INTC remains unsatisfied with the present scale of Mobile & Communications and Foundry businesses, and we could see milestones in 2015 as it attempts to further develop these markets. INTC now trades at 15.5x consensus forward earnings, we think a near-S&P multiple (16.4x average) is appropriate for a large cap name that is executing towards significant growth initiatives. While the law of large numbers often results in compressed large-cap earnings multiples, both MSFT and QCOM have comfortably traded above S&P average multiples when participating in mega-trends that deliver significant earnings growth (via cloud computing and smartphone exposure respectively).”

According to Ian Ing 200 out of 3448 analysts and has an average one year return of 24.5% on the stocks he covers with a 69% success rate.

Another analyst at Deutsche Bank has a Bullish stance on the stock. Ross Seymore issued a note 1 month ago with a Buy rating on the stock and $40.00 price target or 11.27% upside to the last closing price. According to Tip Ranks, Seymore is ranked 22 out of 3448 analysts. The stocks he covers yield an average return of 32.3% in the year following his recommendations.

“Intel’s IoT group is on track to deliver revenue of more than $2bn in 2014E, +18% y/y, and we estimate that it will grow 6% y/y in 2015 (more conservative than Intel’s view of growing “at a very fast pace”, which we interpret as 15%+). While this group at 4% of total revenue is likely too small to make a difference in terms of Intel’s overall growth, we believe it will leverage Intel’s core manufacturing capabilities to expand beyond the PC market. Our bullish view on Intel is based on our expectation that the company will continue to gain share in a stabilized PC market, deliver strong growth in DCG, cut mobile losses, and return significant cash to shareholders. We reiterate our Buy and $40 P/T.”

Intel Corporation (NASDAQ:INTC) shares moved up nearly 2% during yesterday’s trading session, reaching $36.27 at the close.