Infineon: shares edge up after broker comments
(CercleFinance.com) - Shares of German chipmaker Infineon were trading slightly higher on Wednesday following positive broker comments on the stock.
The share - which belongs to Frankfurt's blue-chip DAX index - is currently up 0.5% at 18.8 euros.
In a note to clients, New Street Research analyst Pierre Ferragu says Infineon could be the "best way" to play a recovery in the semiconductor sector.
The independent research house points out that the power chip industry has been hit hard over the past year, underperforming the semiconductor sector index SOX by 16%, and Infineon got hit more than its fair share, underperforming by 35%.
However, New Street Research sees the company ideally positioned to make a potential recovery, citing strong operating leverage, quality diversified exposure and a leading market share.
The analyst also estimates that the 15% accretive effect resulting from the Cypress deal could be seen in 2021.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The share - which belongs to Frankfurt's blue-chip DAX index - is currently up 0.5% at 18.8 euros.
In a note to clients, New Street Research analyst Pierre Ferragu says Infineon could be the "best way" to play a recovery in the semiconductor sector.
The independent research house points out that the power chip industry has been hit hard over the past year, underperforming the semiconductor sector index SOX by 16%, and Infineon got hit more than its fair share, underperforming by 35%.
However, New Street Research sees the company ideally positioned to make a potential recovery, citing strong operating leverage, quality diversified exposure and a leading market share.
The analyst also estimates that the 15% accretive effect resulting from the Cypress deal could be seen in 2021.
Copyright (c) 2019 CercleFinance.com. All rights reserved.