Melexis Balancing its innovation-led top line and profit growth through the cycle

Following the update of our model after Melexis' 3Q25 results and Capital Markets Day (CMD), we maintain our positive stance with an Accumulate rating, but revise our target price to €74 (from €78). While visibility into 2026 remains limited, we continue to see structural tailwinds over the medium to long term, driven by rising semiconductor content from the modernization of automotive platforms and the growing adoption of robotics.


During its CMD, Melexis outlined a strategy built on four pillars: technology leadership, customer intimacy, a fabless model, and system solutions. The company's main focus is to balance innovation-led top-line growth with profitability across the cycle. Melexis targets a high single-digit CAGR through the cycle, a gross profit margin of 45% (previously =45%), and an EBIT margin of 25%. R&D expenses are expected to rise to 12–14% of sales, while Capex should remain in the 5–7% range.