Intel Corporation (INTC) Shares Rise Despite Bearish Reports

Intel Corporation (NASDAQ:INTC) shares inched closer to $21 per share in late morning trades before dropping closer to $20.50 per share. The company’s stock increased 2.5 percent this morning, as analysts from Miller Tabak & Co., LLC released their updated view on the stock.

Intel Corporation (INTC) Shares Rise Despite Bearish Reports

They say Intel Corporation (NASDAQ:INTC) is “suffering from a double headwind.” The analysts say the company’s troubles are linked to negative growth in the personal computer market and having too much inventory. Miller Tabak said they see these problems lasting into next year, so they don’t believe investors will rush to buy shares of Intel Corporation (NASDAQ:INTC) .

According to analysts, the company must get its inventory under control, but it’s difficult to tell when this will happen. Shares of Intel have dropped significantly in recent months, so the valuation of the stock does seem attractive, and the same goes for the dividend. However, Miller Tabak is maintaining its Neutral stance on the stock until they see the company begin to stabilize in the computer and server markets. Today, analysts at Miller Tabak have lowered their target price to $23 from $25, based on their lowered earnings per share estimations.

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Seeking Alpha published a more in-depth analysis of the stock today, saying that they applauded the company for announcing its $6 billion debt raise so that it could buy back its stock. The site also questions why more people aren’t interested in the stock.

The analysts at Miller Tabak weren’t the only ones to give negative reviews to Intel Corporation (NASDAQ:INTC) after the company announced its buyback plan. Nomura and Raymond James analysts also released bearish reports about the stock.