JP Morgan maintains Underweight on Intel, PT down to $20 from $23

JP Morgan maintains Underweight on Intel, PT down to $20 from $23

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JP Morgan has maintained its Underweight rating on Intel (INTC) stock, lowering its price target to $20 from $23. This adjustment comes following Intel's recent underwhelming second-quarter (Q2) guidance, which missed analysts' expectations. The company expects Q2 revenue to be between $11.2 billion and $12.4 billion, falling short of the consensus forecast of $12.8 billion [2].

The downgrade is attributed to several factors, including the elevated uncertainty in the macroeconomic environment, the company's turnaround narrative, and concerns about its 18A semiconductor manufacturing process. Additionally, the recent change in CEO from Pat Gelsinger to Lip-Bu Tan has raised questions about the company's ability to navigate its challenges [2].

Intel's stock has been volatile, dropping more than 8% at the opening bell on Friday. Over the past 12 months, Intel's stock has declined by nearly 45%, with its value slipping 3.6% so far in 2025. Despite these challenges, the company reported earnings per share (EPS) of $0.13 and revenue of $12.7 billion for the first quarter of 2025, exceeding the consensus estimates [2].

Other major brokerages have also adjusted their price targets on Intel's stock. JPMorgan, Morgan Stanley, Rosenblatt, UBS, and Wells Fargo have all lowered their price targets, reflecting the broader sentiment among Wall Street analysts [2].

References:
[1] https://seekingalpha.com/news/4435018-cadence-design-systems-upgraded-to-overweight-by-jp-morgan
[2] https://stocktwits.com/news-articles/markets/equity/intel-stock-drops-as-wall-street-cuts-price-targets-on-weak-q2-guidance/chQpQ17RbWM