Citi maintained a Neutral rating and a price target of $29.50 per share on Intel (NASDAQ:INTC) shares ahead of the Q2 earnings, which is scheduled to be reported on July 27.
The latest data shows that June notebook shipments exceeded expectations, with a 13% month-over-month increase. This outperformance was attributed to strong demand and new product launches.
The analysts pointed out that this marks the fifth month out of six that notebook shipments have surpassed expectations. As a result, Q2/23 notebook shipments rose by 16% quarter-over-quarter, exceeding the analyst’s initial projection of 10% quarter-over-quarter growth.
The analysts anticipate 6% quarter-over-quarter growth in Q3/23 notebook shipments, aligning with seasonal trends due to the absence of clear indications of sustained demand. Considering the strength in notebook shipments, the analysts believe Intel is well-positioned to surpass the upper end of its Q2/23 guidance. However, the analysts maintain a Neutral rating on Intel due to secular challenges and remain below the consensus.