RBC Capital keeps Sector Perform on Flagstar Bank and Intel

what happened

RBC Capital kept its Sector Perform rating on Flagstar Bank shares with a $12 target, according to TradingView. The target implies a 15.6% gain from the October 23 close of $10.38. The analyst note ties the rating to a tougher macro backdrop, including higher-for-longer rates, stronger competition for deposits, and pressure on net interest margins and credit costs. Management pushed its target for peer-level profitability from 2027 to 2028 and cut its earnings per share guidance.

RBC Capital also reiterated Sector Perform on Intel with a $100 target. That implies a 15.0% rise from the October 23 close of $86.96. Analysts expect third-quarter revenue of about $16.3 billion and a beat of at least 5%, driven by strong server CPU demand. Still, competition from AMD and ARM could limit long-term growth and market share, especially in servers.

why it matters

Both calls concern individual companies, but they show how high rates weigh on banks and how investors are judging the chip sector. For Flagstar, the issue is margin pressure; for Intel, the focus is the server segment. Analyst ratings remain one view among many in the market.

market impact

US banks and chipmakers: high rates pressure bank margins, while competition threatens Intel's server market share.

tags

instruments