Free Issue No. 15 of 29.07.2021
As announced in the last WIRTSCHAFTSINFORMATION, here first are some more current, interesting insights and outlooks on the chip and lighting group AMS OS-RAM. Many investors are obviously still not convinced of the advantages of the Osram purchase. Yet the combination is more than obvious: before the acquisition, more than 75% of sales were in the consumer electronics sector; now it will be less than 40% of group revenues, as there is much broader access to other sectors, such as medical technology, industry per se, car manufacturers, etc., which can be further developed. The temporary pedestal loss of 3D sensor technology is thus noticeably smoothed out. At present, no other company has such a broad "technological powerhouse" in these technologies (laser, LED, optical sensors, micro-LED, etc.)! There are various competitive advantages because AMS OSRAM is the only supplier that can sell certain products from a single source. The new micro-LED display alone has an extremely high contrast, causes much less problems in sunlight and reduces power consumption by half (compared to OLED).Mobility is also very much poised for growth as more and more technology is built into vehicles . Even in medicine, there is a sense of optimism with regard to AMS OSRAM products; UV LED light-emitting diodes can - just one more example - disinfect without chemicals. Quality and synergies are unmistakably high. In combination with cost synergies (around EUR 240 million), the sale of less profitable areas and a debt ratio that will soon be comfortable, an adjusted operating profitability of 20% to 25% should be achieved. In terms of sales, double-digit percentage growth is envisaged. The targets are realistic once the transformation is complete!
The Q2 figures will be presented on 30 July 2021 and visible improvements are already expected here. The share is currently valued too low! Target price: CHF 26!
AMS: Positive ahead of Q2 figures!
The Swiss stock market letter WIRTSCHAFTSINFORMATION
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