AMSSY - ams OSRAM Still Can't Catch A Bid Despite Very Low Built-In Expectations
- Investor expectations are still very low for ams OSRAM, and the loss of the 3D sensing business at Apple only intensifies long-term questions about execution and competitiveness.
- The technologies from ams and OSRAM lend themselves to a range of attractive end-markets, including auto, consumer, industrial, and medical applications, but hitting timelines and winning real orders is crucial.
- Management is targeting long-term revenue growth in the double-digits and operating margins above 20%; the addressable markets can support that, but whether ams can execute is an unknown.
- Expectations are so low that 3% revenue growth, low double-digit FCF margins, and mid-30%'s GPMs and low double-digit OPMs can still support a low-to-mid teens fair value for the ADRs.
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ams OSRAM Still Can't Catch A Bid Despite Very Low Built-In Expectations