Intel’s leadership transition creates uncertainty
FBN's Stuart Varney on Intel CEO Brian Krzanich resigning from the company over a 'consensual relationship' with an employee.
Analysts at Nomura Instinet downgraded their rating on Intel shares following the resignation of CEO Brian Krzanich, which they say adds to the “already growing uncertainty” around the company.
Nomura Instinet downgraded its recommendation to Neutral from Buy and cut its share price target to $55 from $60.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| INTC | INTEL CORP. | 24.05 | +0.40 | +1.69% |
Krzanich left Intel Wednesday after an investigation found he had violated company policy in a past relationship with an employee.
Intel has never hired an external CEO, but this is exactly what Nomura says the company should do. They suggest that Intel bring on Broadcom CEO Hock Tan or former GlobalFoundries chief Sanjay Jha.
According to Dow Jones News, under Krzanich's leadership, Intel repeatedly missed its schedule for shipping significant quantities of its next-generation chips. But, rcently Intel's shares have performed well, gaining more than 50% over the past 12 months.
Intel’s current chief financial officer, Bob Swan, is serving as interim CEO as the company conducts a search for a new leader.