Stifel remains 'buy' on Infineon shares, with a slightly lowered target price, from 45 to 43 euros.
The analyst indicates that he has reduced his EPS forecasts for 2024 and 2025 by 10% and 6% respectively.
The broker believes that the recovery expected in the second half of the year, with growth of +15% vs. the first half, will depend on the macroeconomic situation.
Nevertheless, the level of the order book, although decreasing, 'remains sufficiently high to support growth assumptions in the automotive division', it believes.
According to Stifel, now that short-term earnings revisions have been completed, 'investors' attention should once again turn to medium-term growth prospects.'
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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 
