Intel hiring Dave Zinsner as its new CFO gives the chip company a 'dream team,' Citi says
JHVEPhoto/iStock Editorial via Getty Images


Intel's (NASDAQ:INTC)
decision to hire Micron Technology's (NASDAQ:MU) Dave Zinsner to be its new Chief Financial Officer is a "positive" and gives Intel a "dream team" at the top, Citi said in an investment note.
Analyst Christopher Danely, who rates Intel (INTC) neutral with a $52 price target, said the decision to bring Zinsner on board is a positive one, as he has driven operating margins higher at every public he has been the CFO at, as well as "being a good communicator with the Street, in our opinion."
"We now believe Intel has one of the best CEOs and one of the best CFOs in the semiconductor industry," Danely wrote in the note to clients.
Intel (INTC) shares are up nearly 2% to $56.23 in early Tuesday trading on back of the news.
Micron (MU) made the announcement after the market closed on Monday that Zinsner was stepping down.
Going deeper, Danely said Zinsner has improved operating margins by roughly 10% at each public company and when combined with Pat Gelsinger, Intel (INTC) has one of the best semiconductor leadership teams as the company executes its turnaround story.
Despite the high-profile move, Danely said that Intel (INTC) is still facing considerable issues, such as manufacturing delays and losing market share in server CPUs to Advanced Micro Devices (NASDAQ:AMD). "Moreover, considerable effort and focus still will be needed by Intel, especially in manufacturing, to catch up to its competitors," Danely explained.
In addition to Danely's comments, Bank of America analyst Vivek Arya said the decision to appoint Zinsner was positive, highlighting his "strong experience." Arya maintained his underperform rating on Intel (INTC), noting competitive and strategic risks.
Last week, Intel (INTC) was upgraded at Northland, with the investment firm citing the fact that Intel is "starting to execute on a coherent strategy."