For the three months to the end of June, Infineon posted adjusted EPS down 37% year-on-year, to 0.43 euros, on revenues down 9% to 3.7 billion.

Following this publication, UBS has left its Buy recommendation unchanged, with a price target of E44.

Infineon's strong portfolio and second-quarter outperformance suggest a long-term uptrend with significant upside potential," says the analyst firm.

"Operating income for the third fiscal quarter was 2% ahead of expectations. Based on the new guidance for the fourth quarter, we expect minor EPS changes for fiscal 2024 and 2025, which should support the share today' says UBS.

It should be recalled that Infineon has slightly lowered its annual revenue forecast. The German semiconductor manufacturer now anticipates sales of around 15 billion euros (instead of 15.1 billion), but still expects a segment margin of around 20% and an adjusted gross margin 'in the low 40s'.

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