Oddo BHF has reaffirmed its 'outperform' rating on Infineon, and raised its target price from €40 to €45, despite a warning that it believes will 'probably be the last downward revision of guidance for this year'.

'Following the publication of slightly better-than-expected quarterly results yesterday, and despite the downward revision of guidance for 2024, the stock has rebounded strongly (+13%)', notes the analyst, who also points to several positive announcements and indications.

Oddo BHF highlights a 'high triple digit' cost reduction program, which will have full effect in 2027, and believes that AI should be a major driver in the coming years for the German semiconductor manufacturer.

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