AMS: Oddo downgrades stock

(CercleFinance.com) - In its comments on semiconductor companies, Oddo BHF has downgraded its rating on ams from "outperform" to "neutral" after the stock's rebound from its low.
In addition, it has cut its target price for the share from 21 Swiss francs to 18 Swiss francs (current price about 17.4 Swiss francs, -1.2%).

The OSRAM deal will generate significant synergies, which will enable the group to return to an operating margin of 20/25% in the next 2 to 3 years, although the loss of the Apple contract will weigh more heavily than analysts thought in both H2 2021 and into 2022, it said.

Cost-cutting measures undertaken will not offset this. The margin in H2 should be lower than in H1 and they do not expect any further improvements in 2022, the broker adds.


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