Infineon: Liberum still a buyer - cuts target price
(CercleFinance.com) - Liberum maintains its "buy" recommendation on the share of German semiconductor group Infineon, although has cut its target price from 28 euros to 25 euros, after the group cut its estimates for revenues and margins for FY 2020.
"Inventories in China remain high amidst weak car demand," the broker notes, which therefore thinks that charges for the under-utilisation of factories will probably increase in H1 2020, before recovering.
"However, we continue to see Infineon as a key beneficiary of the expected strong growth in EV and ADAS adoption over the next decade," the broker says, also seeing a buy opportunity in the share given its currently low price.
Copyright (c) 2019 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.
"Inventories in China remain high amidst weak car demand," the broker notes, which therefore thinks that charges for the under-utilisation of factories will probably increase in H1 2020, before recovering.
"However, we continue to see Infineon as a key beneficiary of the expected strong growth in EV and ADAS adoption over the next decade," the broker says, also seeing a buy opportunity in the share given its currently low price.
Copyright (c) 2019 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.