UPDATE: Baird Downgrades Intel (INTC) to Neutral

Baird analyst Tristan Gerra downgraded Intel (NASDAQ: INTC) from Outperform to Neutral with a price target of $40.00 (from $60.00).

The analyst comments "Rather than Alder Lake mitigating the PC slowdown, Intel suffers from significant overshipping in the PC channel in past several quarters. PC inventory correction could perdure for several quarters, in our view, given 20+ year high PC supply chain inventory levels. Shift in consumer patterns away from Covid-times athome entertainment devices, combined with weak first-half seasonality, suggests no PC recovery near-term, with resulting under-utilization rates challenging gross margin recovery. Additional delays in Sapphire Rapids and mix positioning favor AMD's positioning in servers in 2H. Downgrading to Neutral."

For an analyst ratings summary and ratings history on Intel click here. For more ratings news on Intel click here.

Shares of Intel closed at $39.71 yesterday.

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