(News Bulletin 247) – Oddo BHF issued an Outperformance recommendation on Infineon shares and raised its price target from 36 to 40E.
Global semiconductor sales in April 2023 were “slightly below expectations”, notes the analyst but overall “the market is stabilizing at -21.6% (+1% sequentially) after 21.3% in March ‘.
“We maintain the idea that the low point has been reached, but we are adjusting our 2023 market forecast to -12% vs -9% due to the continued decline in memory prices in April”, continues the broker.
The semiconductor sector has recently performed very well on the ‘hype AI’ ‘and the valuation is now at its highest, which could merit a correction’, adds the analyst.
In this context, Oddo BHF believes ‘that an intra-sector rotation favorable to players exposed to automotive and industry and via electrification is possible’. In particular STMicroelectronics and Infineon ‘up 26% and 24% respectively, which is higher than general indices such as the CAC and the DAX’.
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