
Infineon: UBS still a buyer after results
(CercleFinance.com) - For the three months to end-June, Infineon posted adjusted EPS that is down 37% y-o-y, at E0.
43, on revenues down 9% to E3.7bn.
Following this publication, UBS maintains its Buy recommendation on the stock, with a target price of E44.
Infineon's strong portfolio and Q2 outperformance suggest a long-term uptrend with significant upside potential, it says.
Operating income for Q3 was 2% ahead of expectations. Based on the new guidance for Q4, we expect minor EPS changes for fiscal 2024 and 2025, which should support the share today, UBS says.
It should be recalled that Infineon has slightly lowered its annual revenue forecast. The German semiconductor manufacturer now anticipates sales of around E15bn (instead of E15.1bn), but still expects a segment margin of around 20% and an adjusted gross margin 'in the low 40s'.
Copyright (c) 2024 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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
43, on revenues down 9% to E3.7bn.
Following this publication, UBS maintains its Buy recommendation on the stock, with a target price of E44.
Infineon's strong portfolio and Q2 outperformance suggest a long-term uptrend with significant upside potential, it says.
Operating income for Q3 was 2% ahead of expectations. Based on the new guidance for Q4, we expect minor EPS changes for fiscal 2024 and 2025, which should support the share today, UBS says.
It should be recalled that Infineon has slightly lowered its annual revenue forecast. The German semiconductor manufacturer now anticipates sales of around E15bn (instead of E15.1bn), but still expects a segment margin of around 20% and an adjusted gross margin 'in the low 40s'.
Copyright (c) 2024 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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.