Intel's (INTC) new chief executive, Lip-Bu Tan, delivered a constructive message at an event on Monday that was "a breath of fresh air" for the company, Truist Securities said in a note to clients emailed Tuesday.
"While one speech doesn't form the basis of an upgrade, we thought this was the most constructive message we've heard from Intel in ... for as long as we've covered the company," said Truist analysts including William Stein.
Tan used the word "culture" repeatedly in his speech at the Intel Vision event on Monday, adding that he "discussed establishing a day-1 startup culture, and a culture of innovation," Truist said.
"Starting with culture, rather than a list of products or manufacturing nodes is a breath of fresh air," the note said.
The investment firm also highlighted the fact that Tan intends to seek feedback from Intel's clients.
"[Tan] stressed that his focus is to solicit feedback from customers (who have graded Intel's products as modestly D's and F's), to correct mistakes, and start to earn their trust back by under-promising and over-delivering," the note said.
Tan also said "his internal focus will be on making Intel an engineering-focused company again. His priority is to recruit and retain the best engineers to empower growth and (again) create a culture of innovation empowerment," Truist noted.
Truist has a hold rating on Intel and a $21 price target.
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