Berenberg ups Melexis to 'buy' on long-term growth prospects

Melexis NV

20/11/2023 08:43

** Berenberg ups Belgian chipmaker Melexis  MLXS.BR  to
"buy" from "hold", seeing an attractive entry point into
company's long-term growth story
    ** It estimates the company will have managed to grow its
revenue at an 11% CAGR over the seven years to FY 2023, without
making any acquisitions
    ** "The guidance revealed at its recent capital markets day
envisages a double-digit CAGR for the next seven too," adds the
brokerage in a note
    ** Berenberg outpoints market's short-term concerns about 
automotive demand and potential upcoming inventory corrections,
but believes Melexis' valuation multiples offer an attractive
long-term opportunity to own
    ** While it thinks that peer X-FAB  XFAB.PA  is a better
short-term play given the cheaper valuation and greater
operating leverage, Berenberg considers Melexis to be the
better-quality sibling
    ** Out of 12 analysts that cover Melexis, five rate the
stock "strong buy" or "buy,"​ six rate "hold" and one rates the
stock "sell"

 (Reporting by Clement Martinot)
 ((Clement.martinot@tr.com))