Infineon: Stifel still buying after Qimonda settlement

(CercleFinance.com) - Stifel confirms its 'buy' recommendation on and target price of E38 for Infineon shares, following a settlement agreement with the receiver of Qimonda for a nominal amount of E800m (E753.
5m without previous agreements).

Recalling that provisions in Infineon's accounts for this case amounted to E212m at end-2023, the broker warns that the difference will be reflected in its 2023-24 income statement, expected on November 12.

The high amount of the agreement is a negative surprise for us, Stifel admits, which nevertheless considers that the additional cash outflow does not change the long-term investment case for the German chipmaker.


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