Intel Corp.'s (INTC) ship is sinking. Analysts from Bernstein and Benchmark have re-evaluated their views on Intel after Brian Krzanich, CEO, stepped down last week. Krzanich was forced to resign after news broke that he had a "consensual relationship" with an employee. Intel has a non-fraternization policy. Bernstein downgraded Intel to underperform. The chip manufacturer's price target was lowered to $42 from $54. Bernstein analyst Stacy Rasgon wrote, "frankly, we have been regretting [Intel's upgrade to market-perform]; not necessarily from the perspective of the stock, but rather that it is becoming increasingly that the structural issues we have promulgated for years are becoming ever obvious to investors. And now, we believe uncertainty around the CEO change provides an opening, limiting risk if numbers continue to move up for the time being, while these structural issues grow more visible." Bernstein noted that "Intel [is] about to enter a product cycle without leadership for the first time." Benchmark analysts are initiating a hold for Intel. "It is difficult to find other mega-cap stocks with such a compelling story, in our view. However, Intel recently pre-announced upside to near-term results, announced the resignation of its CEO and faces several competitive threats, all of which may take the stock back to its historical multiples and keep investors on the sidelines. Hence our hold," wrote Benchmark. It's not all bad news, though. Bernstein analyst Mike Burton wrote, "Data center architectures and spend are shifting toward memory and accelerators; we believe Intel has a play here with its investments in NAND/XPoint and the Atera acquisition. However, it faces stronger competition from Nvidia and others in these areas." On Monday, June 25, Intel was downgraded by Nomura Instinet. Romit Shah downgraded Intel to neutral from buy. He also lowered the price target to $55 from $60. Shah cited the lack of leadership at Intel as a reason for the downgrade. In morning trading, Intel was down more than 1% to $50.01. In the past five days, Intel has dropped nearly 7%. Read More Intel Faces Multiple Downgrades After CEO Departure : https://ift.tt/2yLOi6F
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