Infineon: Berenberg raises target price

(CercleFinance.com) - On Friday Berenberg raised its target price for Infineon Technologies shares from 40 euros to 44 euros, while renewing its buy rating on the stock.


According to the broker, the strong profit margins currently enjoyed by the German chipmaker are simply a reflection of the profitable growth momentum that is driving its results.

In addition to the decline in energy prices and the easing of pressure on its production costs, it is increasing prices that is driving this good performance, Berenberg argues.

In short, it says that the group's is well on track to generate profitable growth and that if this strong execution were to continue, then profit margins should structurally increase in the future.


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