By Carly Forster
Intel Corporation (NASDAQ:INTC) is a Santa Clara, California based American multinational semiconductor chip maker, also known for making personal computers (PCs). It was revealed earlier this week that Intel was granted approval from Israel’s Finance and Economy Ministries to invest $6 billion in order to remodel and increase growth of its chip manufacturing plant in Kiryat Gat.
A Financial Experts Opinion
Here’s what Charlie Munger had to say at the Daily Journal meeting
Charlie Munger spoke at the Daily Journal Corporation's Annual Meeting of Shareholders today. Although Warren Buffett is the more well-known Berkshire Hathaway chief, Munger has been at his side through much of his investing career. Q4 2020 hedge fund letters, conferences and more Charlie Munger's speech at the Daily Journal meeting was live-streamed on Yahoo Read More
On September 23rd, Jefferies analyst Mark Lipacis recommended a Buy rating for Intel with a $45 price target. He noted, “We’ve argued that with the intro of its 14nm products, Intel will have both lower cost and longer battery life processor vs. competitive tablet processors.” Lipacis has rated Intel Corporation (NASDAQ:INTC) 28 times, earnings an 84% success rate in recommending the stock with a +29.3% average return per recommendation.
Lipacis has a history of recommending stocks in the technology industry, like Broadcom Corporation (NASDAQ:BRCM) and Texas Instruments Incorporated (NASDAQ:TXN), helping him earn a 72% success rate overall with a +14.6% average return per recommendation.
On August 11th of this year, Lipacis reiterated a Buy rating for Broadcom with a $51 price target. He noted, “With the wind-down of its money losing cellular business, BRCM plans to announce a new business model for the first time in 16 years. While it doesn’t know exactly what its new model will look like, we left meetings with the CFO with the sense that it will be higher gross margins, higher fiscal discipline, higher operating margins and higher capital return. We continue to believe that these changes are not yet discounted in the stock – our price target is $51.” Lipacis has an 80% success rate recommending the stock with a +22.8% average return.
Separately on July 22, Lipacis reiterated a Buy rating on Texas Instruments and raised his price target from $55 to $60. He explained, “2Q14 EPS beat by $0.04 on better gross margins and opex. We forecast 2014 to be the 3rd yr where TXN’s Net Capital Return and FCF exceed its Net Income. We’ve argued that best practices in capital return will sustain a premium P/E, our $60 price target assumes a P/E of 22x, but a P/FCF of 17x our 2015 forecast.” Lipacis has an 88% success rate in recommending the stock with a +16.8% average return.
On the other hand, Lipacis has not always been so successful with his recommendations. On July 14th, Lipacis recommended a Buy rating for Advanced Micro Devices (AMD). He reasoned, “Near term, we think 2Q14 PCs were better than expected, and AMD has product cycles in corporate PC, GPU, and, professional graphics. Longer term we believe AMD’s semi-custom business gives it visibility. We think AMD will announce 1-to-2 more semi-custom design wins by EOY14, which will serve as a catalyst. At 0.7x EV/S 2014 (vs. group at 3.0-3.5x), we find the risk/reward compelling.” Lipacis has a 45% success rate in recommending the stock, earning a -9.2% average return.
Lipacis is a fan of the technology industry, but would you trust his latest recommendation based on his financial advice history?
To see more recommendations from Mark Lipacis, visit TipRanks today!
Carly Forster writes about stock market news. She can be reached at [email protected]