UPDATE: Stifel Reiterates On Intel Following Positive Revenue/Earnings Report

In a report published Wednesday, Stifel analyst Kevin Cassidy reiterated a Buy rating on Intel (NASDAQ: INTC), and raised the price target from $31.00 to $36.00.

In the report, Stifel noted, “Intel delivered June revenues and earnings slightly above its positive pre-announcement. Looking out to the September quarter, demand is expected to return to a seasonal up 4% q/q growth and gross margin is expected to soar to a near four-year high 66% as the company continues to wring out costs from its 22nm manufacturing process.

"Other positives include Grantley production launch set for the September quarter, 14nm Broadwell CPUs fully qualified, Intel-based tablet units tracking 40mn by year end and a new $20bn share repurchase program. The INTC bears may point to the ~$1bn quarterly operating loss in the Mobile and Communications Group but we agree with management that Intel's viability in broadening its markets and outgrowing its peers may depend on having full-featured cellular modems integrated into its processors. We maintain our Buy rating.”

Intel closed on Tuesday at $31.71.