AMS-Osram extends losses after microLED project axed; analysts cut ratings
01/03/2024 10:17
** AMS-Osram's shares AMS.VI keep sliding after Thursday's
news that the sensor maker's client cancelled a microLED
technology project
** Bernstein cuts AMS to "market-perform" from "outperform",
saying that with the project off the table a strong long-term
growth driver is missing
** "While AMS continues see auto/industrial growth
opportunity, the loss of the microLED opportunity is a strong
blow to the med-term growth plans and likely investor
enthusiasm" - Bernstein
** The brokerage decreases its 2026 revenue estimates by
around 120 million euros ($129.74 million) and adds that AMS
needs to now navigate either repurposing or divestment of
microLED
** Stifel also cuts its rating to "hold" from "buy", adding
that while short term impact is digestable, long-term growth
implications are material
** Deutsche Bank slashes its PT on the stock by 35% to 1.8
Swiss francs
** The stock falls 8% by 1004 GMT to 2009 lows, extending
Thursday's 39% slump
($1 = 0.9249 euros)
(Reporting by Paolo Laudani)
((Paolo.Laudani@thomsonreuters.com))