Infineon Technologies: Upside Attractive If It Rerates Back To Peers' Level

Aug. 06, 2023 11:27 PM ETInfineon Technologies AG (IFNNY) StockIFNNY
GS Investing
1.34K Followers

Summary

  • I recommend a Buy rating as I expect growth normalization and valuation reversion to peers' levels.
  • Demand for green energy transition and electromobility are driving performance.
  • China's expansion of electromobility incentives should boost Infineon's automotive semiconductor sales in FY24.
Modern technology UI control information display, car fueling station connected power cable, plug-in charging power for electric vehicles, and alternative sustainable eco energy

choochart choochaikupt/iStock via Getty Images

Investment action

Based on my current outlook and analysis of Infineon Technologies (OTCQX:IFNNY), I recommend a buy rating. I expect the business to see its growth normalize as it continues to clear its backlog. Infineon should also see its valuation rerate

This article was written by

1.34K Followers
I consider an investment ideal if it performs its core business in a sector projected to experience structural (organic) growth in excess of GDP growth over the next 5-10 years; profits from sustainable competitive advantages that translate into attractive unit economics; In the hands of competent, ethical, and long-term thinkers; with a fair valuation

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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