IFNNY - Infineon: Investors Are Paying Too Much

• Infineon Technologies AG is a leading semiconductor company based in Germany.
• Infineon has grown at more than 10% CAGR since 1999, thereby consistently outperforming not only the broad market but also the semiconductor industry.
• Infineon is poised to benefit from secular tailwinds such as the electrification of mobility, renewable energy transition, and increased global interest for strong security systems.
• However, at €36/share per share, the stock appears fairly valued, if not overvalued.
• Based on a residual earnings framework, I assign a HOLD/Underweight recommendation with a €25.59/share target price.

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