Intel shares enjoy positive bump following RW Baird upgrade to outperform

Shares of Intel Corp. were up more than 1.7% before the opening bell Thursday, after they were upgraded to outperform from neutral at RW Baird. Analyst Tristan Gerra wrote in a note that Intel's mix of data centers has reached sufficient critical mass to drive renewed earnings-per-share growth in 2017. Data center demand is high, according to Gerra, who also increased his price target to $38 from $33. He wrote that Intel's LTE technology has matured, improving its positioning for a potential tier-one smartphone in the second half of the year. One caveat Gerra laid out in his note is Intel's reliance on revenue from PCs. "Intel derives nearly two-thirds of its revenues from the PC market," he wrote, also stating PC units could be down 10% in the first quarter compared to last quarter. To help diversify moving forward, people within the company told The Wall Street Journal recently Intel is working on an augmented-reality headset. Shares of Intel are down more than 11% so far in the year, while the Dow Jones Industrial Average has lost 3%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.