On Monday, Deutsche Bank maintained a Hold rating on Intel Corporation (NASDAQ:INTC), with a steady price target of $38.00. The position comes in light of recent news regarding Intel's potential investment negotiations.
A Wall Street Journal report highlighted a prospective deal between Intel and investment firm Apollo, which could lead to an $11 billion investment in a manufacturing facility in Ireland. Apollo is reportedly the leading candidate, with an official announcement anticipated in the forthcoming weeks.
The reported deal aligns with Intel's previous management statements about seeking partnerships to acquire private capital. Intel's inaugural venture in this domain was its $30 billion partnership with Brookfield in August 2022 for its Arizona fabrication plant, part of its Semiconductor Co-Investment Program (SCIP).
Deutsche Bank acknowledges the strategic rationale for Intel, as such partnerships can provide alternative funding sources at potentially favorable costs.
However, Deutsche Bank also notes that while these deals offer near-term financial benefits to Intel, they may dilute the company's long-term returns. The bank suggests that Intel may continue to adopt this financing approach for further expansion of its fabrication network in other locations, including Ohio and Germany.
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