AMS: Oddo confirms rating after roadshow

(CercleFinance.com) - Oddo organised a roadshow day in Paris with Moritz Gmeiner, Head of IR at AMS.

Following this meeting, the broker confirmed its Buy rating on the stock, with a target price of 55 Swiss francs. Oddo believes that the current configuration offers a new buy opportunity for investors.

The first topic discussed was the potential impact of the Huawei case. The broker initially overestimated the weight of the Chinese telecom equipment maker, which only represents about 5% of sales and not the 10% initially estimated (Apple represents about 50% and Samsung 10%) .The group confirms that it can continue to deliver Huawei normally. As such, the broker maintains its forecast for sequential growth of +5% in Q2.

Analysts point out that the group has reconfirmed that the strong growth in H2 mainly depends on its la client (Apple) and very little on Huawei.

Oddo says that it expects 29% sequential sales growth in Q3, with an OM of 13.8%, followed by 33% sequential growth in Q4. The broker still expects FY adjusted EBIT of 266 million dollars, slightly above the consensus of 260 million dollars, meaning an OM of 13.1%.

Amongst other topics, the group highlighted the potential represented by the automotive market (currently 10% of sales).



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