AMS: Liberum downgrades buy rating
(CercleFinance.com) - Liberum has downgraded its "buy" rating on the share of Austrian semi-conductor AMS, now recommending investors "hold" the share.
Alongside this downgrade, the broker has cut its corresponding target price from 65 Swiss francs to 45 Swiss francs, "Given the increased uncertainty that the bid brings" on Osram.
The broker says that it is cautious towards this offer and its potential to create value: while is admits that this deal helps in diversifying the group's revenues (from the smartphone to the automotive sectors), Liberum believes that Osram's business faces structural challengers that will not be easy for it to solve.
It also considers that AMS "seems to be betting on the successful commercialisation and growth of a number of early stage technologies within OSRAM and AMS," and warns that success in these domains is not guaranteed.
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