1-Star Price
INVESTOR
5-Star Price
INVESTOR
Economic Moat
INVESTOR
Capital Allocation
INVESTOR
Narrow-moat Infineon Technologies’ fiscal fourth-quarter earnings call struck a bullish tone, as the company is optimistic in the secular tailwinds around decarbonization and digitization, especially in automotive. Consistent with our note published on Nov. 14 when Infineon announced its earnings and guidance, we are modestly raising our fair value estimate to EUR 43 from EUR 40 (and to $44 from $42 for U.S. shares). Infineon still appears undervalued to us.
Infineon Technologies headquartered in Munich, was spun off from German industrial conglomerate Siemens in 2000 and today is one of Europe's largest chipmakers. The company is a leader in the automotive semiconductor market with prominent products used in active safety and powertrain content within vehicles. Infineon is also the market leader in power semiconductors used to deliver voltage within a wide variety of electrical systems. The company operates in four segments: automotive, industrial power control, power and sensor systems, and connected secure systems.
