Intel: shares slide after analyst's downgrade
(CercleFinance.com) - Shares of Intel fell on Friday after an analyst at Wells Fargo downgraded shares of the world's top chipmaker, warning of a weakening demand for semiconductors and rising AMD competition.
Analyst Aaron Rakers has cut his rating on the stock from "outperform" to "market perform" on Friday, as the share now reflects "more balanced risk/reward," he said.
Weak demand data points for the semiconductor industry leave him to consider some downside risk to estimates, he pointed out.
In a note to clients, Rakers also cites "increasingly visible AMD competition," with Intel's eternal rival well positioned to continue to gain market shares through 2019.
Wells Fargo has a target price of 60 dollars for the Intel share.
The Intel share traded at 55.1 dollars in mid-morning on the Nasdaq, down 1.5 percent, while the wider semiconductor index SOXX was up 0.4 percent.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Analyst Aaron Rakers has cut his rating on the stock from "outperform" to "market perform" on Friday, as the share now reflects "more balanced risk/reward," he said.
Weak demand data points for the semiconductor industry leave him to consider some downside risk to estimates, he pointed out.
In a note to clients, Rakers also cites "increasingly visible AMD competition," with Intel's eternal rival well positioned to continue to gain market shares through 2019.
Wells Fargo has a target price of 60 dollars for the Intel share.
The Intel share traded at 55.1 dollars in mid-morning on the Nasdaq, down 1.5 percent, while the wider semiconductor index SOXX was up 0.4 percent.
Copyright (c) 2019 CercleFinance.com. All rights reserved.