Colello is maintaining his three-star rating on Intel against Morningstar’s five-tier scale. This "indicates that investors are likely to receive a fair risk-adjusted return (approximately cost of equity)”, according to Morningstar.
Morningstar Equity Research analyst Brian Colello is keeping his target price on chipmaker Intel unchanged even as its CEO exits. Pat Gelsinger, who was hired in 2021 to lead an ambitious turnaround of the Nasdaq-listed firm, announced on Dec 2 that he will retire.
Intel, which has only floundered compared to peers, saw its stock rally about 4% to US$25 ($33.60) on the news. “Given Gelsinger's loyalty to Intel, we attribute the appreciation to the market's greater optimism that Intel will be broken up and, in turn, will unlock shareholder value,” says Colello in a Dec 2 note.
