Infineon: profile still very attractive for Oddo BHF
(CercleFinance.com) - Following a roadshow with Infineon in North America, Oddo BHF has reiterated its "outperform" rating and maintained its forecasts, as well as its E50 target price, judging that the profile of the German semiconductor manufacturer remains very attractive.
The broker points to the company's relatively low exposure to consumer goods, but very high exposure to automotive and industrial goods, and more specifically to the megatrends in electrification, which it believes should enable it to weather the current cyclical correction.
The stock's valuation remains low at 7.7x 2023 EBITDA, well below its 10-year average of 11x. It includes an assumption of downward revisions of around 30% to 40%, which analysts believe has a very low probability of happening.
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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.
The broker points to the company's relatively low exposure to consumer goods, but very high exposure to automotive and industrial goods, and more specifically to the megatrends in electrification, which it believes should enable it to weather the current cyclical correction.
The stock's valuation remains low at 7.7x 2023 EBITDA, well below its 10-year average of 11x. It includes an assumption of downward revisions of around 30% to 40%, which analysts believe has a very low probability of happening.
Copyright (c) 2023 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.