Infineon Technologies AG (IFNNF – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Amanda Tan from DBS maintained a Buy rating on the stock and has a €39.00 price target.
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Amanda Tan has given her Buy rating due to a combination of factors that highlight Infineon Technologies AG’s strengths and growth potential. The company’s performance has exceeded expectations, particularly in the first quarter of fiscal year 2025, with better-than-anticipated earnings per share and revenue figures despite some challenges in the automotive segment. Infineon’s leadership in the power semiconductor market is underscored by its significant market share, which stands at 20.6% in 2022, far ahead of competitors like ON Semiconductor and STMicroelectronics.
Furthermore, Infineon’s strategic position in the automotive semiconductor market, commanding a 12.4% share, along with its advancements in wide bandgap materials such as SiC and GaN, positions it well for future growth. The long-term drivers of decarbonization and digitalization, especially in the automotive sector, are expected to propel its topline growth, supported by trends in electric vehicles and advanced driver assistance systems. Despite some near-term challenges, including the slowdown in non-automotive segments, the company’s favorable long-term outlook, market leadership, and ability to adapt to structural trends in technology support the Buy recommendation, with a target price of EUR 39.0.
In another report released today, Morgan Stanley also upgraded the stock to a Buy with a €40.00 price target.
Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is neutral on the stock.