Infineon: BarCap downgrades stock
(CercleFinance.com) - Barclays Capital (BarCap) has downgraded its rating on the Infineon stock from "weight in line" to "underweight" and has cut its corresponding target price to 20 euros, "limited operating leverage in the long term and cycle concerns, particularly automotive, in the near term".
"In line with Infineon's targets, capex is sustainably higher, leaving margins stuck in the 17-18% range and below more bullish market expectations," said the broker.
BarCap also points out that the German semiconductor manufacturer is more cyclically exposed than others, given its focus on the automobile segment, which has been recently hit by profit warnings from car makers such as Daimler.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"In line with Infineon's targets, capex is sustainably higher, leaving margins stuck in the 17-18% range and below more bullish market expectations," said the broker.
BarCap also points out that the German semiconductor manufacturer is more cyclically exposed than others, given its focus on the automobile segment, which has been recently hit by profit warnings from car makers such as Daimler.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.