INFINEON : Oddo BHF remains positive, lowers its target
February 07, 2024 at 04:09 am EST
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Oddo BHF maintains its 'outperform' opinion on Infineon, with a price target lowered from €43 to €41, in the wake of forecasts lowered by an average of 8/9% for the German semiconductor group, the day after its quarterly results.
"The idea that emerges from this publication is that the second quarter of 2024 could be the low point of this cycle for Infineon, with margins remaining at good levels for a bottom of cycle", believes the analyst.
On the basis of its forecasts, the research firm points out that 'the share is trading at 8.7 times 2024 EBITDA, still well below its 10-year average of 11 times, while the automotive sector is holding up and the group is preserving its margins'.
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Infineon Technologies AG is one of the world's leading manufacturers of semiconductors. The group's products include power semiconductors, sensors, microcontrollers, digital, mixed-signal and analog ICs, discrete semiconductor modules, switches, interface ICs, motor-controlling ICs, RF power transistors, voltage regulators, and electronic safety components. Net sales break down by area of activity as follows:
- automotive (50.5%): semiconductor products used in the automotive industry, and memory products for specific applications for automotive, industrial, information technologies, telecommunications and consumer electronics.
- power & sensor systems (23.3%): semiconductors for energy-efficient power supplies, mobile devices, mobile phone network infrastructures, human-machine interaction as well as applications with special demands on their robustness and reliability.
- industrial power control (13.5%): semiconductor products for the conversion of electrical energy for small, medium and high-power applications, used in the manufacturing, the low-loss transmission, the storage and the efficient use of electrical energy;
- connected secure systems (12.6%): semiconductors for networked devices, card-based applications, and government documents; microcontrollers for industrial, entertainment, and household applications, components for connectivity systems, various customer support systems;
- other (0.1%).
Net sales are distributed geographically as follows: Germany (12.4%), Europe/Middle East/Africa (14.4%), China/Hong Kong/Taiwan (32.3%), Japan (10.5%), Asia/Pacific (15.9%), the United States (12.1%) and Americas (2.4%).
INFINEON TECHNOLOGIES AG 
