Melexis FIRST LOOK: 4Q below our and CSS but focus should be on the outlook
4Q24 sales of € 197.4m was below guidance in a quarter where Melexis worked with its automotive customers to significantly reduce their inventories. Melexis did not achieve its original FY24 sales target of around € 1bn, which they call “disappointing”. While customer inventory corrections are continuing in 1H25, Melexis is cautiously optimistic that customer demand will start to improve around the summer.We reiterate our Buy rating and € 85 TP. We think share weaknesses are buying opportunities as we want to be ahead of the re-rating of automotive semiconductor stocks relative to other chip stocks over the next 12 months. We expect the market to look beyond near-term weakness and should start pricing in the next upcycle especially for automotive semiconductor stocks.
Melexis designs, develops, tests and markets advanced integrated circuits primarily for the automotive industry. Co. sells its products to a wide customer base in the automotive, medical and industrial markets in Europe, Asia and North America. Co.'s main products are Hall effect ICs, Pressure and Acceleration Sensors, Sensor Interface ICs, Automotive Systems-on-a-Chip, Embedded Microcontrollers, Bus System Chips, Optical and Infrared sensors. In each case the products are primarily developed for automotive applications and designated lead customers with subsequent use in commercial and industrial applications.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.