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Investing.com - Berenberg has reiterated a Buy rating and EUR40.00 price target on Infineon Technologies AG (ETR:IFX) (OTC:IFNNY), a $52.36 billion semiconductor manufacturer, following the company’s Q3 FY 2025 results. The stock, currently trading at $40.93, has delivered a strong 27% return year-to-date.
The German semiconductor manufacturer reported quarterly revenue in line with consensus expectations while simultaneously raising its gross margin and segment margin guidance for the full year. The company maintains a healthy gross margin of 40.83% and generates annual revenue of $15.83 billion.
Infineon’s improved outlook stems from better utilization rates and faster-than-expected execution of its cost-saving program, which offset foreign exchange headwinds during the quarter.
The company now expects to achieve half of its planned cost savings in 2025, two-thirds in 2026, and the full balance in 2027, an acceleration from previous projections that anticipated savings would only begin to materialize in 2025.
Berenberg highlighted Infineon’s strong cost-management discipline during a period of elevated demand uncertainty, noting that with full cost savings expected by 2027 and cycle growth returning to historical levels, Infineon should be able to exceed its previously provided 25% segment margin guidance. The company maintains a FAIR financial health score of 2.44 according to InvestingPro’s comprehensive analysis.
In other recent news, Infineon Technologies AG has been the focus of several analyst updates. Bernstein SocGen Group initiated coverage of Infineon with an outperform rating, highlighting the company’s strong position in automotive microcontrollers and power semiconductors. Bernstein pointed out that Infineon holds a 32% market share in automotive microcontrollers and 29% in power semiconductors. The firm also noted that AI server power content is expected to grow significantly, positioning Infineon as a key supplier in this expanding sector. Meanwhile, BofA Securities adjusted its price target for Infineon to €45 from €46, maintaining a "Buy" rating. The revision reflects anticipated foreign exchange challenges, although Infineon is still considered a top pick in the European automotive semiconductor sector. BofA Securities emphasized Infineon’s leadership in the Chinese electric vehicle market and its growing share in the AI server market. These recent developments underscore Infineon’s strategic position in the semiconductor industry.
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