X-FAB: Berenberg expects adjusted net profit to almost quintuple in 2021

X-Fab Silicon Foundries Europese Vennootschap

30/01/2020 09:53

** Shares in Belgium-based X-FAB Silicon Foundries  XFAB.PA 
rise 7% after Berenberg upgrades the stock to "buy" from "hold"
as it expects operating leverage to drive fast profit growth
    ** The brokerage says it expects an improvement from Q1 2020
onwards driven by improved autumn 2019 order behaviour and the
easing in the automotive downturn noted by the company's main
customer
    ** It says its 12% revenue growth forecast for 2020 might be
 too conservative
    ** "We expect adjusted net profit to almost quintuple in
2021 and then rise by another 76% in 2022," Berenberg writes
    ** However, the broker says the company's Q4 2019 results,
due on Feb. 11, will be weak, but it sees a better Q1 2020
outlook 

  

 ((marta.frackowiak@thomsonreuters.com))