FRANKFURT (dpa-AFX) - A positive analyst recommendation drove Elmos Semiconductor shares to their highest level in a month on Friday. They gained 3.2 percent to 68.70 euros in early trading at the top of the somewhat weaker second-line index SDax.

The investment bank Stifel had started its rating for the semiconductor manufacturer's shares with a "buy". The price target is 100 euros, which is more than six euros above the previous record high of April 2023.

Elmos shares had performed weaker from the end of November to the beginning of February, partly due to negative headlines from the sector. However, they were well supported at the 62-euro mark.

Elmos is riding the wave of semiconductor components for the automotive industry, said Stifel analyst Florian Sager in his study. He praised the management and the stable shareholder structure. The discount of the shares to the valuation of the competition opens up an attractive buying opportunity. Converting more profit into available cash by reducing investments and working capital is the decisive lever that the market is currently underestimating, according to the expert./ajx/tih/men