AMS: Oddo confirms rating

(CercleFinance.com) - AMS has confirmed that its acquisition of OSRAM is going according to plan and that it should be completed in the second quarter of 2020.

Oddo says that AMS intends to finance its offer with bridge loans amounting to 4.4 billion euros and share issues of 1.6 billion euros.

The group has reinstated its forecast for Q1 2020 sales of 480 million to 520 million dollars, with an operating margin of 17%-19%. Oddo adds that this is clearly good news and reflects a certain solidity in the activity of Android smartphone manufacturers (Samsung, Huawei and Chinese manufacturers) most of which occurs in H1, Oddo adds.

However, that says nothing about 1/ demand and visibility over the next few quarters, in particular Q2, and 2/ what will be Apple demand in H2.

Oddo says that in the current framework, it cannot see enough positive catalysts to consider upgrading the share Buy. It therefore confirms its Neutral rating on the share, with a target price of 56 Swiss francs.


Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.