Melexis rises on 'small but supportive' buyback announcement
10/12/2024 08:35
** Shares in Melexis MLXS.BR are up 3.2% after it
announced a 50 million euro ($52.7 million) share buyback
programme, representing 2% of its market cap
** "Although small, we believe the buyback is a sign of
confidence by the management in a recovery in end markets," says
ING in a note
** "We believe the buyback has an opportunistic element in
it driven by the current relatively low valuation of Melexis at
11x EV/EBIT 2025F vs historical average 18x," the broker adds
** Melexis says it will buy back up to 850,000 shares
between Dec. 11, 2024 and Dec. 10, 2025
** Belgium's largest semiconductor supplier had last
announced a share buyback in 2021
** If the gains hold, the shares will see their best day
since July, when it reported Q2 sales above market expectations
($1 = 0.9482 euros)
(Reporting by Anna Peverieri)
((Anna.peverieri@thomsonreuters.com))