Melexis : End of the inventory correction justifies an upgrade to Neutral (vs Reduce), but the valuation (at an historic high) does not justify a Buy rating
>Neutral vs Reduce, pleasant surprises likely on guidance, but the valuation is too demanding to adopt a Buy rating - Following the publication last week of Q4 2019 results, we are upgrading our rating to Neutral (vs Reduce). Management 1/ confirmed that the correction of stocks had run its course, 2/ guided for a 2020 clearly ahead of expectations and 3/ guided for growth of 10% for 2020. A quarterly analysis of FY 2020 leads us to think that this guidance is cautiou...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.
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
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