European Semiconductors: COVID-19 tailwinds overlooked- Berenberg
26/05/2020 08:03
** Berenberg says it believes the market is underestimating
the fundamental tailwinds that the COVID-19 pandemic is
providing for semiconductor demand
** The brokerage says it believes the demand for
semiconductors and semiconductor equipment is likely to hold up
better than investors expect, thanks to the "stay-at-home"
economy and accelerated need to "pandemic-proof" businesses
** It sees the ongoing roll-out of 5G as a huge structural
tailwind, which should drive the current cycle to be stronger
and longer than previous ones
** Berenberg adds that while the pandemic is dampening
demand in some end-markets, such as wireless communication and
automotive, it has provided a strong boost in others, such as
data centres and PCs
** The broker ups VAT Group VACN.S and Inficon IFCN.S to
"buy" from "hold", saying both companies are "attractive
high-quality options for investors wanting to gain exposure to
the digital revolution theme"
((milla.nissi@tr.com))