Infineon share: better than expected numbers on the way?

This week there were a number of new analysts’ opinions on Infineon shares. The equity experts at UBS have raised their price target for the DAX share from EUR 25.50 to EUR 29.00. It remains with the buy recommendation for the share certificate of the chip manufacturer from Munich. UBS assumes that a strong cyclical recovery will shape the picture in the industry from the third quarter. There have already been positive signals from other companies.

Deutsche Bank is also positive for the Infineon share and confirms the buy recommendation this week. Interestingly, the price target of the stock experts at 27 euros is now behind the current share price of the DAX stock – this ended trading in the XETRA system on Friday at 27.51 euros (+2.52 percent). Deutsche Bank also sees signs that the third quarter of 2020 may have gone better than expected. Demand impulses are mainly coming from the automotive industry and the IoT sector.

Previously, a conference call with an Infineon manager had created a positive mood among analysts at DZ Bank. Peter Schiefer, head of the auto division at Infineon, was optimistic in the conversation. Auto production is expected to recover, with China likely to be the driver. In 2021 there should be global car growth of 15 percent. E-mobility also serves as a growth driver. There should be a very high level of demand here in 2021. Consumer acceptance is also increasing. Another driving force is driver assistance. Infineon is in a very good position here.

According to these statements, the analysts of DZ Bank confirm the buy recommendation for the shares of Infineon. The price target is raised from EUR 26.70 to EUR 29.00. The company is seen as future-proof. The low point in the auto division has been overcome. This means that more semiconductors are needed again, and this also applies to electromobility. The experts do not make any changes to the profit estimates. In 2020/2021 they expect earnings per share of EUR 0.89.

At a glance – chart and news: Infineon


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