Global confirmed coronavirus cases topped 766,000 today, according to Johns Hopkins University, and it kind of feels like the world might be ending.
So why did Intel (NASDAQ:INTC) stock pop more than 7% this morning, and why are Intel shares still up a healthy 5% as of 2:25 p.m. EDT?
This morning, analysts at Citigroup lowered their price target on Intel shares, according to TheFly.com. That's the bad news. The good news is that while Citi no longer thinks Intel stock is worth $67 a share, it does think the stock is worth $58. And seeing as Intel closed trading last week at only $52 and change, investors are pretty pleased to hear Citi say their stock could go up 10% over the next 12 months.
Factor in Intel's above-average 2.4% dividend yield, and the news gets even better.
Why does Citi think Intel stock is undervalued? As the analyst explains, we're probably in a recession right now. (That's more bad news, if not exactly a surprise.) In Citi's estimation, this recession feels a lot like the one we had back in 2009, and while that one saw Intel decline for two quarters running, the stock enjoyed a strong recovery in the two succeeding quarters.
Translation: This present pandemic-cum-recession may feel like the end of the world, but it isn't. A year from now, things could look a whole lot better, for the economy, and for Intel stock, too.