Please ensure Javascript is enabled for purposes of website accessibility

Why Intel Stock Popped 7% This Morning

By Rich Smith - Mar 30, 2020 at 3:02PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

An analyst predicts the recession could be just six months long.

What happened

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 (INTC -0.76%) stock pop more than 7% this morning, and why are Intel shares still up a healthy 5% as of 2:25 p.m. EDT?

A rising green stock arrow on a black screen.

Image source: Getty Images.

So what

This morning, analysts at Citigroup lowered their price target on Intel shares, according to 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.

Now what

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.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Intel. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Intel Corporation Stock Quote
Intel Corporation
$35.39 (-0.76%) $0.27

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.