Intel Has Been Named “Top Pick” At This Firm

An analyst at Citi Research is feeling very Bullish about Intel Corporation.

Analyst Christopher Danely has made the stock the “top pick” of the firm and cited the company’s booming corporate sales as a reason why.

The firm has forecast that Intel will report profits this year that beat expectations.

According to Danely, “We believe Intel is the only semiconductor stock with both poor sentiment and substantial upside to consensus estimates. As a result, we are moving Intel from #3 to #1 in our company rankings.”

Citi Research has reiterated a “buy” rating and gave the stock a $58 price target.

In a note to clients entitled, “Intel – More Conviction on Recent Upgrade to Buy, Moving to Top Pick,” Danely notes that Cisco, as well as Nvidia and Lenovo, all said that the corporate business environment is strong.

According to Danely, the company will report EPS of $3.57 for 2018 compared to the $3.55 that Wall Street is expecting.

“We believe the recovery in the enterprise end market will drive Consensus estimates higher on Intel as the enterprise end market is over 50% of Intel sales and has declined every year for the past three years,” Danely wrote. “The enterprise end market drove upside to Intel in 4Q17 and we believe it will be sustainable in 2018 driven by the improving economy and increased spending from tax reform.”

Disclaimer: We have no position in Intel Corporation (NASDAQ: INTC) and have not been compensated for this article.