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Investing.com - Kepler Cheuvreux has reduced its price target on Infineon Technologies AG (OTC:IFNNY) to EUR42.00 from EUR44.00 while maintaining a Buy rating on the semiconductor manufacturer. Currently trading at $38.29, the company commands a market capitalization of nearly $50 billion and shows a strong financial health score according to InvestingPro data.
The research firm cited more cautious estimates for fiscal year 2026 ahead of the company’s upcoming FY 2025 results presentation, noting that their revised projections now appear "rather de-risked." Notably, four analysts have recently revised their earnings estimates upward for the upcoming period, with the stock maintaining a robust dividend payment track record spanning 15 consecutive years.
Despite the target reduction, Kepler Cheuvreux highlighted Infineon’s ongoing recovery, pointing to positive organic sales growth since the third quarter, inventory levels returning to healthy ranges, a substantial order backlog, and stable pricing.
The firm also noted that Infineon’s underlying trends are gradually improving, with organic growth picking up alongside stronger margins, supported by lower underutilization charges and the implementation of cost-cutting measures.
Kepler Cheuvreux maintained its Buy recommendation on Infineon, which it considers "one of our top picks in the sector," despite acknowledging uncertain macroeconomic conditions and foreign exchange headwinds affecting the company.
In other recent news, Infineon Technologies AG reported its Q3 FY 2025 results, revealing quarterly revenue that met consensus expectations. The company also raised its gross margin and segment margin guidance for the full year, signaling progress in its cost-saving efforts. Berenberg has reiterated a Buy rating for Infineon, maintaining a price target of EUR40.00. Additionally, Bernstein initiated coverage of Infineon with an outperform rating, setting a price target of EUR45.00. Bernstein’s analysis highlights Infineon’s leadership in automotive microcontrollers and power semiconductors. The firm noted that Infineon holds a 32% market share in automotive microcontrollers and a 29% share in power semiconductors. Bernstein also pointed out that AI server power content is expected to grow significantly between 2024 and 2027, with Infineon well-positioned as a leading supplier in this expanding segment. These developments reflect the company’s strategic positioning in key growth areas.
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