Fundamentals May Have Bottomed Out For Intel Stock, An Analyst Says

Bernstein thinks that Intel shareholders may be able to enjoy the best of times for a while yet.

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As reported by Trade Algo, Intel INTC –0.03% stock (ticker: INTC) was upgraded by Stacy Rasgon at that week's earnings call from Underperform to Market-Perform and his price target was increased from $20 to $30.

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Despite a (tremendous amount) of bad news in recent weeks, the company is no longer expected to fall on such a drip of bad news," Rasgon wrote in a letter to shareholders. The downside could be more limited in the second half of the year, if not longer in the end, but we would not want to own it.

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There was an increase of 1% in the share price by midday trading to $33.01. Throughout the past 12 months, the share price of this company has fallen by 31%.

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The annual dividend paid by Intel was reduced by 66% in February, from 36.5 cents to 12.5 cents. Intel has cited the need to exercise a higher level of financial flexibility to carry out its turn-around plans as the reason for the reduction.

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Intel has reduced its earnings estimates to a level where they should be able to meet in the near future, according to Rasgon. The company may also be able to meet its schedule for its upcoming chip pipeline, despite a number of delays that have been experienced over the past several weeks.

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During this point of time, he wrote, "Near-term fundamentals may have reached an inflection point,". It is unlikely that the situation will get worse in the future.

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The stock has received mixed reviews from Wall Street in terms of its performance. There are 16% of analysts covering the company who have given their company a Buy or equivalent rating, 65% who gave it a Hold rating, and 19% who gave it a Sell rating, according to Trade Algo .