AMS Osram shares jump after Jefferies ups to 'buy'
14/12/2023 08:40
** Shares in AMS Osram AMS.S jump 11% after Jefferies
upgrades the Swiss sensor maker to "buy" from "hold", saying its
balance sheet is now "healthy" after rights issue and debt raise
** Jefferies says the semiconductor industry is an upcycle
and the Swiss group benefits from business exits, automotive
design wins and a significant smartphone sensor ramp from the
second quarter of 2024
** "Along with 450 million euros ($489.92 million) from
asset transactions, the balance sheet is now healthy," the
broker says, citing the company's management execution is
impressive so far and should continue
** It expects semiconductor stocks including AMS Osram to
re-rate in line with previous upcycles, while benefiting from
rising volumes and margins on a recover in demand, post
inventory correction
** "Such a recovery is already coming through in smartphones
where AMS has significant exposure," it adds, highlighting
smarthphone growth expectations are being revised upwards, due
to accelerating China sales
** The stock tops the Swiss mid-cap index .SMIM , which
rises 2.3%
($1 = 0.9185 euros)
(Reporting by Ozan Ergenay)
((ozan.ergenay@thomsonreuters.com))