MELEXIS : Shift expectations
This note will take a look at various megatrends that will drive Melexis’ sales in Auto, which is forecast to be the fastest-growing semiconductor end-market (+15% CAGR) over the 2019-2024 period. The most significant trend is the electrification of the car parc, which, catalysed by the pandemic, will continue to propel the market for semiconductors well past 2021. Alongside this secular growth trajectory over the long-term, we also believe the company is well positioned in the short-term to seize opportunities arising from the current global chip shortage in Auto. Over 2020-2023, we expect Melexis to realize an EPS CAGR of 29%, well ahead of our projected sales CAGR of 14%. Our target of 30x 2022E EV/EBIT, equivalent to a 25% premium to semiconductor peers, values the company at € 105ps. We upgrade to BUY (from HOLD).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.