Infineon: Oddo confirms rating with potential Cypress deal
(CercleFinance.com) - Bloomberg says that US national security recommends that President Trump blocks Cypress' takeover by Infineon.
It says that they are concerned that the deal poses a threat to national security. Infineon, which it estimates generates about 30% of its revenues in China, has tried to negotiate an agreement with the government that would enable the deal to progress, although has not yet managed to conclude it.
Nothing is yet certain, although paradoxically, a failure of the deal would actually benefit the share price, broker Oddo says. Analysts however confirm their neutral rating on the share, for the moment, along with a target price of 20 euros.
They are closely monitoring the situation, but the potential ditching of the deal, which would come at a time when tensions relating to COVID-19 would be declining, would offer investors an ideal entry point.
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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.
It says that they are concerned that the deal poses a threat to national security. Infineon, which it estimates generates about 30% of its revenues in China, has tried to negotiate an agreement with the government that would enable the deal to progress, although has not yet managed to conclude it.
Nothing is yet certain, although paradoxically, a failure of the deal would actually benefit the share price, broker Oddo says. Analysts however confirm their neutral rating on the share, for the moment, along with a target price of 20 euros.
They are closely monitoring the situation, but the potential ditching of the deal, which would come at a time when tensions relating to COVID-19 would be declining, would offer investors an ideal entry point.
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.