Intel (NASDAQ: INTC) stock price rallied sharply in the last two months after experiencing volatility in the first half of this year. INTC shares soared close to 22% in the last two months alone.
The stock is currently trading around 52-weeks high of $57. Low valuations combined with strong growth prospects are supporting bullish case.
Analysts believe Intel stock price has further upside potential in the days to come. INTC shares are currently trading around 12 times to earnings and 3 times to sales. Its stock is also likely to receive support from improving market trends in PC and data center markets.
Analysts Boosted Intel Stock Price Target
Market pundits have raised INTC shares target following stronger than expected results for the latest quarter. Northland Capital increased the Intel price target to $69 with an Outperform rating. The firm is seeing a lower cost structure and growth in earnings in the coming days.
The firm says, “INTC’s modem business to Apple reduced operating expenses moving forward by about $450M per year, adding $0.10 in earnings.”
Morgan Stanley has set the Intel price target at $65 with Overweight ratings. MS believes that INTC has strong long-term opportunities. In addition, its process and design have returned to a much tighter level of coordination.
Nomura claims that Intel is in a position to offer cash returns to investors as it is working on the right priorities. Nomura set a price target of $65 for Intel.
INTC Shares Received Support from Outlook
The company has increased its outlook for the fourth quarter amid strengthening demand. It expects Q4 revenue in the range of $19.2B compared to the consensus estimate for $18.83B.
The earnings are likely to stand around $1.24 per share relative to the consensus for $1.21. Moreover, the company has also raised full-year revenue and earnings guidance to $71B and $4.60, respectively. On the whole, the analyst’s higher price targets and significant growth in financial numbers are the biggest catalysts for Intel stock price.
