Infineon Technologies AG : No turn-around in sight

01/17/2022 | 04:46am EDT

Tommy Douziech

long trade Stop-loss triggered

Entry price : 39.21€ | Target : 45.94€ | Stop-loss : 35.8€ | Potential : 17.16%

Shares in Infineon Technologies AG show a positive technical chart pattern over the medium term, which suggests that the rising trend should be followed. Investors have an opportunity to buy the stock and target the € 45.94.

Summary

• The company presents an interesting fundamental situation from a short-term investment perspective.
• The company has a good ESG score relative to its sector, according to Refinitiv.

Strengths

• The group's high margin levels account for strong profits.
• Over the past year, analysts have regularly revised upwards their sales forecast for the company.
• Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
• For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
• For the past twelve months, EPS forecast has been revised upwards.
• Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
• The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
• Consensus analysts have strongly revised their opinion of the company over the past 12 months.

Weaknesses

• The company benefits from high valuations in earnings multiples.
• With an enterprise value anticipated at 4.17 times the sales for the current fiscal year, the company turns out to be overvalued.
• In relation to the value of its tangible assets, the company's valuation appears relatively high.
• The valuation of the company is particularly high given the cash flows generated by its activity.
• The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

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