DBS analyst Ling Lee Keng has maintained their bullish stance on RNECF stock, giving a Buy rating on January 31.
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Ling Lee Keng’s rating is based on a combination of factors that highlight Renesas Electronics’ potential for future growth. Despite a recent decline in EBITDA and revenue, the company shows promise in its automotive segment with a significant increase in revenue, indicating strong performance in a key area. Additionally, Renesas is recognized for its broad range of high-performance and power-efficient microcontrollers, which positions it as a leader in the semiconductor market.
Renesas has demonstrated improving profitability due to strategic shifts in its product mix, particularly in embedded control and connectivity solutions. The company is also strategically targeting the high-growth AI market and aims for substantial revenue growth by 2030. Furthermore, Renesas’ current valuation appears attractive compared to its peers, suggesting potential upside in its stock price. While there are risks related to demand recovery and competition, the company’s efforts in acquisitions and expanding capabilities are expected to mitigate these challenges.
In another report released on January 31, Bernstein also maintained a Buy rating on the stock with a Yen2,630.00 price target.