Infineon: Model is adjusted after the financing round

A few days ago there was a capital increase at Infineon. Institutional investors subscribed to the financing round as part of a private placement. Existing shareholders had no subscription rights. The subscription price per share is EUR 19.30. The gross amount comes to the company at EUR 1.06 billion. The money will be used to acquire Cypress. So a loan can be partly repaid.

Independent Research analysts incorporated the higher number of shares into their model. Therefore, their earnings forecast per share for 2019/2020 is reduced from EUR 0.52 to EUR 0.50. For 2020/2021, the estimate falls from 0.79 euros to 0.76 euros.

At the same time, the analysts confirm the buy recommendation for Infineon’s shares. So far, the target price for the value was EUR 21.00. It rises to 25.00 euros in today’s study.

Overall, the experts are more positive about Infineon’s long-term prospects.

Infineon’s shares lose 1.3 percent in the afternoon to EUR 21.00.


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