Analyst Florian Sager of Stifel Nicolaus maintained a Buy rating on ELMOS Semiconductor (0N9K – Research Report), with a price target of €80.00.
Florian Sager’s rating is based on a combination of factors that position ELMOS Semiconductor favorably for investors. Despite a slight miss on sales and free cash flow (FCF) for the fourth quarter, the company has shown resilience in a challenging automotive market. ELMOS has managed to achieve a modest growth rate, outperforming many peers who have faced declines. This resilience is attributed to their strategic positioning, which is less reliant on electric vehicles compared to competitors.
Looking ahead to 2025, ELMOS anticipates stable sales with a significant improvement in FCF, even excluding one-time gains from asset sales. The company’s capacity expansion efforts in previous years are now allowing it to reduce capital expenditures significantly, boosting its FCF outlook. The projected FCF for 2025 is notably higher than consensus expectations, indicating a strong financial position moving forward. These factors collectively underscore the Buy rating as ELMOS is well-positioned to navigate the current market conditions and deliver value to its shareholders.
In another report released on February 6, Hauck & Aufhaeuser also maintained a Buy rating on the stock with a €89.00 price target.