KBC replaces chipmaker Melexis with X-FAB in its top picks

X-Fab Silicon Foundries Europese Vennootschap

02/12/2021 10:23

** KBC Securities cuts Melexis  MLXS.BR  to "accumulate"
from "buy" as it replaces the Belgian chipmaker by speciality
foundry X-FAB  XFAB.PA  in its list of top picks
    ** The brokerage sees more upside potential for X-FAB, which
it says is well positioned to seize opportunities arising from
the ongoing chip shortage in the automobile market
    ** It says the most significant trend is the electrification
of the car parc, which will continue to propel the market for
semiconductors well past 2021
    ** For Melexis, KBC warns of supply chain constraints which
have a bigger impact on sales of non-automotive applications
than on automotive applications
    ** "Considering limited upside of our TP (EUR 112) vs the
latest close (i.e. 5%), we've decided to lower our rating," the
broker says on Melexis
    ** Melexis stock is up by around 29% YTD, while X-FAB has
risen 90%

 (Reporting by Juliette Portala)
 ((juliette.portala@tr.com))