Report
Frederic Yoboue

Semiconductors & Hardware | Connecting the dots - ams | Initiation of coverage SELL | FV EUR12.0

3D sensing technologies for smartphones still hold great potential for semiconductor companies as its market value is set to grow by a CAGR of 31% between 2019 and 2024 to reach around USD7bn. This should stem particularly from the growing adoption of Time of Flight (ToF) technology both for world-facing and front-facing applications.

ams | Initiation of coverage SELL | FV EUR12.0

Sensing the risk

While the company demonstrates solid fundamentals in sensors, including for 3D sensing applications, we have a critical view on the ongoing acquisition of OSRAM. Not only does OSRAM significantly lower ams’ return on capital employed, but the deal comes at a high price considering the current weakness of the automotive market. We have run thorough business and financial analysis, including different scenarios, and our conclusion is that it is not worth the risk.
Underlying
Ams AG

AMS provides advanced sensor and analog solutions for high value and emerging markets. Co.'s markets include Consumer and Communications and Industrial, Medical, Automotive. Co. delivers a broad range of innovative technology solutions for consumer electronics and communication device manufacturers including intelligent light sensors, MEMS microphone ICs, NFC solutions, active noise-cancelling ICs and ultra-low power management solutions. Co. offers customized, application-specific integrated circuits and standard solutions for a broad range of industrial applications including automation and control, position sensors, building automation, security and high-resolution seismic analysis.

Provider
Bryan Garnier
Bryan Garnier

Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.

Analysts
Frederic Yoboue

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