Buy Intel shares, because its CEO change will not hurt the chipmaker: Credit Suisse

Kiyoshi Ota | Bloomberg | Getty Images

Management turnover at Intel will not negatively impact the company's business momentum, according to Credit Suisse.

The firm reiterated its outperform rating for the chipmaker's shares, predicting the company will generate strong earnings results next year.

On Thursday Intel announced the resignation of its CEO Brian Krzanich for his infraction of the company's non-fraternization policy. Krzanich violated the policy that said managers cannot have relationships with people who report to them either directly or indirectly.

"While Krzanich's departure is a negative and increases NT uncertainty, especially as internal succession is less than clear and external candidates are less than obvious, we would highlight the continuity of the Board remains EXTREMELY high … and we would not expect a dramatic change in strategy as the Board embarks on a CEO search," analyst John Pitzer said in a note to clients Thursday. "We also continue to believe the narrative around 10 nm push-outs and server share loss is overdone ... We continue to see upside to our CY18 and CY19 EPS ests."

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