BofA analysts upped the firm's price target on Intel (NASDAQ:INTC) to $32 from $28 but said in a note that the company's internal foundry model is not a game changer and maintained an Underperform rating on the stock.
Previewing INTC's June 21st Internal Foundry Model (IFM) webinar, the BofA analysts said they anticipate a formal separation of financials for the design and manufacturing business units of the company and potential updates on foundry progress and external customer wins.
"Importantly, IFM is a key milestone in providing direct benchmarks for comparison against peers as well as driving financial efficiencies within the company," wrote the analysts.
"However, it does not change the structural headwinds INTC faces as an IDM: inability for the design team to outsource majority of manufacturing, and the inherent conflict of interest from competing against potential customers."
They also noted that INTC also remains "highly exposed" to traditional computing (CPUs).
Intel shares are down 2% Wednesday.