Infineon: Oddo BHF raises target price

(CercleFinance.com) - Oddo BHF has an Outperform rating on Infineon shares, having raised its target price for them from E36 to E40.


Global semiconductor sales for April 2023 were slightly below expectations, the analyst says, but overall the market stabilised at -21.6% (+1% sequentially) after 21.3% in March.

Analysts still believe that the low point has been reached, although adjusting their market forecast for 2023 to -12%, from -9%, due to the continued fall in memory prices in April, the broker adds.

The semiconductor sector has recently performed very well on the 'AI hype' and valuation is now at its highest, which could merit a correction, the analyst adds.

Against this backdrop, Oddo BHF believes that an intra-sector rotation in favour of players with automotive and industrial exposure and via electrification is possible. In particular, STMicroelectronics and Infineon have risen by 26% and 24% respectively, outperforming the CAC and DAX.


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