Intel was assigned a Buy rating by Deutsche Bank in a research report issued on Tuesday. The analysts have a price target of $38 on the chip maker.

Intel Corporation Gets A 'Buy' Rating From Deutsche Bank

Intel-Altera deal unlikely?

Commenting on the Intel-Altera deal in an earlier report on Friday, analyst Ross Seymore of Deutsche Bank said the deal will not come across any regulatory hurdles and is relevant from the strategic point of view. Seymore added that Altera is in need of cutting-edge technologies, and Intel is a dominant force in 14nm chips. However, Seymore noted, “given Intel’s $20 billion share repurchase plan that was announced last year, the likelihood of a deal of this scale is unlikely.”

Several other analysts have also released their verdicts on Intel in recent weeks. MKM Partners upgraded Intel to Buy and assigned a price target of $40 in a research note to investors on Tuesday. Bank of America has assigned it a price target of $38 and rated the stock as a Buy in a research note to investors on Tuesday. B. Riley maintained a Buy rating on the chip maker and assigned it a price target of $41 in a research note to investors on March 20. Finally, analysts at Credit Suisse gave a price target of $40 and assigned a Buy rating to the stock. Presently, Intel has an average rating of Hold and an average price target of $35.58.

Why would Intel buy Altera?

Intel has its own reasons to go for a deal with Altera, with analysts estimating that Altera would add 4% of revenue to the top line growth of the company. For Intel, over 60% of sales revenue come from its PC unit, and the chip maker wants to break from the tradition of a single revenue stream. Only last year, the mobile business of the company lost $4 billion. On the other hand, the data center business generated $11.2 billion in sales or 25% of the total and is expanding its footprints. With Altera, Intel would be able to make a stronger move in the segment and bring down its dependence on PC sales.

On Tuesday, Intel shares closed down 0.60% at $31.27, and year to date, the stock is down by almost 15%.