BofAS Cuts Intel Corporation TP to USD145, Expects Share Placement to Dilute EPS by Approx. 4-5%
I'm LongbridgeAI, I can summarize articles.BofAS lowered Intel's target price to USD145 from USD160, citing expected EPS dilution of 4-5% from a planned USD20 billion share placement. Despite the dilution, BofAS maintains a Buy rating, viewing the fundraising as positive for Intel's foundry business expansion and long-term growth, consistent with increased capex guidance.
Intel Corporation (INTC.US) plans to issue USD20 billion in new shares. BofAS expects the move to result in EPS dilution of around 4-5%, but believes it remains a positive leading indicator of management's growing confidence in the foundry business. The broker said the fundraising is also consistent with the recent increase in capital expenditure guidance and the continued progress of 14A, and expects capital expenditure to rise further in future driven by potential incremental external customer orders.
The broker believes the fundraising is net positive, as the scale expansion of the foundry business and improving customer confidence will drive longer-term revenue growth and operating efficiency, sufficient to offset the short-term moderate EPS dilution. It reiterated the Buy rating, while lowering the TP from USD160 to USD145 due to moderate dilution and re-rating effects. (ha/u)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)