Edison Investment Research Limited 
Edison Investment Research Limited: IQE (IQE): At the heart of 5G 
transformation 
 
11-Dec-2020 / 08:44 GMT/BST 
 
                                                London, UK, 11 December 2020 
 
                IQE (IQE): At the heart of 5G transformation 
 
The breadth of IQE's technology portfolio and ability to serve compound 
semiconductor chip customers in the US and Asia puts it in a good position 
to benefit from rising demand for compound semiconductor applications for 5G 
and connected devices. Infrastructure roll-out appears relatively unaffected 
so far by the coronavirus pandemic. Global handset shipments are expected to 
pick up in 2021, potentially stimulated by new 'must-have' AR apps enabled 
by 5G connectivity and world-facing time-of-flight (ToF) devices, supporting 
a trebling of PBT in FY21. 
 
IQE's share price has more than recovered the ground lost during the panic 
selling in March. At current levels, IQE is trading in line with the mean 
EV/EBITDA multiples of the sample of companies engaged in manufacturing 
VCSEL epitaxy. Given IQE's broader product portfolio, we believe it is 
reasonable for IQE to trade on multiples that are at the upper bound of this 
sample. However, we believe share price improvement will require greater 
visibility of how handset demand will be affected by any pandemic related 
recession in 2021 and whether the switch to 5G and the availability of as 
yet unknown 'must-have' AR apps will be sufficient motivation for 
cash-strapped consumers to justify upgrading their handsets. 
 
Click here [1] to view the full report. 
 
Subscribe [2]to Edison's content to receive reports by email. 
 
All reports published by Edison are free-to-access and available on the 
website [3]. 
 
About Edison: Edison is an investment research and advisory company, with 
offices in North America, Europe, the Middle East and AsiaPac. The heart of 
Edison is our world-renowned equity research platform and deep multi-sector 
expertise. At Edison Investment Research, our research is widely read by 
international investors, advisers and stakeholders. Edison Advisors 
leverages our core research platform to provide differentiated services 
including investor relations and strategic consulting. 
 
Edison is authorised and regulated by the Financial Conduct Authority [4]. 
 
Edison is not an adviser or broker-dealer and does not provide investment 
advice. Edison's reports are not solicitations to buy or sell any 
securities. 
 
For more information please contact Edison: 
 
Anne Margaret Crow, +44 (0)20 3077 5700 
 
Dan Ridsdale, +44 (0)20 3077 5729 
 
tech@edisongroup.com 
 
Learn more at www.edisongroup.com [5] and connect with Edison on: 
 
LinkedIn https://www.linkedin.com/company/edison-group- [6] 
 
Twitter www.twitter.com/Edison_Inv_Res [7] 
 
YouTube https://www.youtube.com/user/EdisonITV/videos [8] 
 
Dissemination of a CORPORATE NEWS, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
End of Announcement - EQS News Service 
 
1154547 11-Dec-2020 
 
 
1: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=ae21a53fd76bfc09b473cbfbd7e4ab0a&application_id=1154547&site_id=vwd&application_name=news 
2: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=dc4b6da9609a3fa15934b7007f0912b2&application_id=1154547&site_id=vwd&application_name=news 
3: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=2d62d350e44141e01d1766d8ed0b3f95&application_id=1154547&site_id=vwd&application_name=news 
4: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=105fe9be9b5e36892886e5a39d51d4b7&application_id=1154547&site_id=vwd&application_name=news 
5: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=88c95533002fab2316572f9ef6cf3cc6&application_id=1154547&site_id=vwd&application_name=news 
6: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=afe662765000a80ab72afd922939c992&application_id=1154547&site_id=vwd&application_name=news 
7: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=ec2d264fe4f303e2143a2e85c6eaa823&application_id=1154547&site_id=vwd&application_name=news 
8: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=503a664bab9a3c1e597c376ef91e0298&application_id=1154547&site_id=vwd&application_name=news

(END) Dow Jones Newswires

December 11, 2020 03:44 ET (08:44 GMT)