Intel Stock Forecast: Greatly Reduced Contra Revenue Is A Big Tailwind For Intel (INTC)

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology  – Senior Analyst at I Know First

Intel Stock Forecast

  • Intel is reducing its contra revenue on mobile application processors for tablets/smartphones.Intel
  • Reduction in contra revenue could substantially improve operating profits of Intel’s PC/Mobile chips division.
  • Intel is now refocusing on supplying higher-margin x86 processors to pricey 2-in-1 tablet/notebooks like the Surface Pro 4.
The Intel-powered luxury Microsoft Surface Book laptop is seeing brisk pre-order demand.

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INTC Stock Forecast: Is Intel Corporation An Investing Opportunity?

Summary

  • Intel is often oversold and undervalued, even in timesintc stock news of good performance and steady dividend growth.
  • Cash flow analysis estimates a fair value of $35.
  • Opinion analysis estimates an average price target of $36.11.
  • I Know First Algorithm is bullish on the company in the three-month and one-year time horizons.
  • Probability and target price projections agree on a present value of 7.83% return in 2015 (excluding dividend payouts).
Intel qualifies as an attractive long term investment if you are searching for the right dividend stock. It has a very high market share and EBITDA margin in the server processors and chipset segment. Intel furthermore is well aware of the shifting trend from desktop to notebook, it is well positioned to capitalize on this trend (or at least if anything make up the losses from desktops in notebooks). Intel will also gradually get more exposure into mobile markets as they have begun doing this year. Finally the huge growth potential of the internet of things could be a major revenue growth segment in the future.

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