Infineon: Liberum still a buyer after acquisition of Cypress

(CercleFinance.com) - Liberum maintains its "buy" rating, along with its target price of 28 euros on the Infineon share, expecting "strong execution" after the acquisition of Cypress Semiconductor.


According to the British broker, the deal will provide Infineon with a general-purpose microcontroller business which will enable it to compete more broadly in key markets, such as the Internet of things (IoT), industrial automation and automotive.

"The acquisition multiple is high, but we expect Infineon to generate sufficient cost and revenue synergies to justify it," Liberum adds.

The broker believes that the Infineon stock is "attractively priced," given its exposure to fast growing end-markets and the potential upside to profitabilty and cash flow from the Cypress acquisition.

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