11:40 AM EDT, 04/01/2024 (MT Newswires) -- Intel's ( INTC ) new segment disclosure could "tease" its sum-of-the-parts valuation, UBS Securities said Monday.

The chipmaker will be re-segmenting its profit and loss to align with "a more distinct" separation of its manufacturing and product groups, UBS analysts Timothy Arcuri and Carlos Colorado said in a note.

UBS has a "slightly more positive view" of the revenue and margin potential at the company's new manufacturing company segment, known as Intel Foundry, the analysts said.

The brokerage raised its price target on the stock to $50 from $46 while keeping its neutral rating, citing the company's "flagging position" in key growth segments such as artificial intelligence, according to the note.

"If Intel ( INTC ) were able to drive wafer costs down to levels more in line with peers, we could see a potential spin of the Mfg Co operation adding an est. ~$15/share in value, however, this would still take several years to materialize," the analysts said.

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