Intel Corp.’s stock surged 1.2% in morning trade Monday, which puts the stock on track to close at a 17-year high, after the chip maker was upgraded at BMO Capital, which signs of improving execution and attractive valuation. Analyst Ambrish Srivastava raised his rating to outperform, after being at market perform since June 2015. He listed his stock price target to $58, which is about 18% above current levels, from $37. “The single biggest reason for our change in thinking is our belief that Intel is finally addressing a facet of the business model/company that we have struggled with in the past, i.e., lack of financial discipline, whether it comes to capital allocation, making acquisitions that have made little sense at least to us over the years, or simply keeping its operating model in check,” Srivastava wrote in a note to clients. “We find the stock attractively valued vs. our group, as well as more broadly.” The stock has climbed 24% year to date, while the PHLX Semiconductor Index has run up 40% and the S&P 500 has gained 15%.
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