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Intel: wave of analyst downgrades following results

(CercleFinance.com) - Intel fell sharply on Friday, dropping to more than ten-year lows, as several analysts lowered their recommendations on the stock following the chipmaker's severe earnings warning last night.


By 10:30 a.m. (New York time), the stock was down 29%, by far the red lantern of the Dow Jones index.

Bank of America analysts announced this morning that they had decided to downgrade their opinion on the stock to 'underperform', with a price target of $23.

We see no way of quickly or easily resolving the competitive, financial, strategic and manufacturing difficulties facing the group", explains Bofa.

HSBC has also downgraded its opinion from 'hold' to 'lighten up', stating that it does not understand the reasons behind this setback and deploring the lack of visibility regarding a possible recovery.

Its target was thus cut from $35 to $19.8.

New Street Research, an independent research firm, also said it was losing confidence in the prospect of a turnaround for the processor manufacturer, leading it to downgrade its recommendation to 'neutral', with a target of $27.

Despite a disappointing second quarter, unreassuring forecasts, the suspension of the dividend, a 15% reduction in headcount and a 10% cut in costs, Mizuho's teams say they remain 'outperform' on the stock, even though their target has been cut from $45 to $36.

Wedbush Securities, which recalls that it was hoping for good news with the quarterly publication, is also disappointed and has reduced its target from $32.5 to $25.

Deutsche Bank points out that, with the exception of second-quarter sales in line with expectations, all key indicators for the past quarter came in below expectations, as did the targets communicated by the Group.

While it is true that economic conditions are not easy, we believe that investors have understood that many of these difficulties are specific to the company, and that the transformation efforts undertaken by the company have not yet borne fruit", concludes the German bank.

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