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Mizuho analysts slashed their price target on Intel Corporation (INTC, Financial) stock on Friday, sending the chipmaker to a five-month low. Shares fell nearly 4% to a low of $19, the stock's lowest level since September. Mizuho downgraded Intel from 'neutral' to 'negative' with a reduced price target of $21 from $23. This setback is coming at the same time when Intel's future starts looking bleaker as President Biden prepares to announce tighter chip export controls.
Market performance has been a struggle for Intel for some time. The company is currently trading at levels not seen in nearly 22 years. The company's leadership has changed several times, including the return of Pat Gelsinger, but he has recently left, further spooking investors. The uncertainty also increased following a report that Qualcomm has decided to abandon its bid to acquire Intel.
While this represents challenges, retail investors' sentiment has displayed a significant turnaround here, with Stocktwits seeing a surge in bullishness. Retail trader sentiment on the platform turned from 'bearish' to 'extremely bullish' overnight. Even the transition to a new CEO within a few months cannot be ruled out, say analysts at Citi, but the big picture is still unclear.
Intel shares have fallen more than 45% in the last six months and about 60% in the last year. With also external pressures and internal leadership transitions, the company's long term recovery is uncertain.
This article first appeared on GuruFocus.