Infineon: Underestimated potential (focus released today)
BUY, Fair Value EUR15 (+15%)
A year ago, we initiated coverage of Infineon with the strong conviction that the group could integrate International Rectifier faster than expected. This proved to be true and led the group to announce strong guidance for FY16 in a tough environment (back in November 2015). Over one year, the share price has already jumped 17% (vs. Stoxx 600 14%). However, in view of the group's strong operating performance over the period, we believe the opportunity remains intact. We reiterate our Buy recommendation.
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