The share of Infineon has roughly doubled since the low in mid-March. There has been a slight plus since the beginning of the year. The semiconductor manufacturer is currently one of the 10 strongest stocks in the DAX®. According to Thomson Reuters, a large proportion of the analysts continue to classify the share as worth holding or even buying. However, resets cannot be ruled out. Against this background, for example, bonus cap certificates or an Express Reverse Convertible Bond Protect could be interesting alternatives to direct entry.
The Munich semiconductor manufacturer Infineon has recently reached deep into its pocket to take over its US competitor Cypress Semiconductor for around nine billion euros. The purchase initially angered many investors because the purchase price was high. With Cypress, however, Infineon rises to the top 10 of the world’s largest chip manufacturers. In the automotive sector, Infineon even sees itself as number 1. However, the rise to the largest manufacturers in the world was not the sole goal of CEO Reinhard Ploss. Rather, it reduces the high level of dependency on the automotive sector. Cypress is heavily involved in growth segments such as industrial digitization and the Internet of Things. In addition, the energy sector and sensor area gained in importance.
In view of the improved diversification, Engineer Ploss revised the forecasts downwards in March 2020. However, he currently only anticipates a decline in sales of around five percent in the current 2019/20 financial year. This would make Infineon perform better than many of its competitors. “Despite all the difficulties, for example in supply chains and in manufacturing, we have largely been able to maintain our operations in the past few weeks,” the manager recently told the Handelsblatt. How well Infineon got through the third business quarter will prove at the beginning of August at the latest when the business figures are presented. The latest registration figures in the automotive sector suggest a significant decline in this segment. According to analysts, the rating is moderate. However, the security is not free from risks.
Chart-technical outlook: Infineon
Resistance marks: 20.90 / 21.35 / 21.80 EUR
Support marks: EUR 18.80 / 19.60 / EUR 20.05
Infineon shares have been in a range between EUR 18.80 and EUR 21.80 since mid-May. The share is currently heading for the resistance level at EUR 20.90. If the breakout above the level succeeds, there is a chance of the upward movement continuing up to EUR 21.35 / 21.80. The share finds strong support in the range of EUR 20.05. The bears are likely to gain the upper hand below this mark at the earliest.
Infineon in EUR; Hourly chart (1 candle = 1 hour)
Viewing period: May 19, 2020 – June 23, 2020. Historical considerations are not reliable indicators of future developments. Source: tradingdesk.onemarkets.de
Infineon in EUR; Weekly chart (1 candle = 1 week)
Observation period: June 24, 2015 – June 23, 2020. Historical considerations are not reliable indicators of future developments. Source: onemarkets.tradingdesk.de
Bonus cap certificates on Infineon shares for speculation that the stock will move sideways or moderately upwards
|Underlying||WKN||Selling price in EUR||Barrier in EUR||Cap (upper price limit) in EUR||Final valuation day|
|Infineon||HZ3D8G||20.98||14.50||24.00||December 18, 2020|
Source: HypoVereinsbank onemarkets; As of June 23, 2020; 11:19 a.m.
Express Protect Reverse Convertible on Infineon shares for speculation that the stock is moving sideways
|Underlying||WKN||Issue price in EUR||Barrier in EUR||interest rate||Repayment date|
|Infineon||HVB4GK *||101.25% of the nominal value||50% **||4.4%||07/21/2023 ***|
* In subscription until July 16, 2020 (subject to early closure); ** the reference price on the initial observation day; *** early repayment is possible (see terms and conditions) Source: HypoVereinsbank onemarkets; As of June 23, 2020; 11:27 a.m.
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Infineon – Semiconductor Manufacturers in the Top10! first appeared on onemarket’s blog (HypoVereinsbank – UniCredit Bank AG).
Author: Richard Pfadenhauer