AMS Osram soars after ZKB raises to 'outperform'
08/12/2023 13:33
** Shares in AMS Osram AMS.S jump 7.2% after Zuercher
Kantonalbank raises the Swiss sensor maker to "outperform" from
"market perform", citing the completion of painful but necessary
refinancing amid the stock's strong price decline
** "The painful but necessary and overarching refinancing
should soon be completed," ZKB says, as it highlights that the
focus should increasingly shift to operational development
** The broker expects a significant improvement in free cash
flow (FCF) and leverage, as well as a partly cost-driven
increase in earnings and falling capex
** "The new management team, which has been in place since
July 2023, is planning a strategic realignment that we believe
is generically aimed at strengthening the FCF and reducing
risk," it says, adding that this is increasingly positive
** It sees flat-panel display technology Micro-LED as a
potential wildcard for further upside for the company as well,
adding that sizeable Micro-LED successes are barely priced by
the market
** The AMS Osram shares, down 43.2% YTD, gained 28.8% since
Monday
(Reporting by Ozan Ergenay)
((ozan.ergenay@thomsonreuters.com))