Last checked at 28 Jan 2022 07:00
Edison Investment Research Limited Edison Investment Research Limited: IQE (IQE): New CEO - new engagement with markets 28-Jan-2022 / 07:00 GMT/BST
London, UK, 28 January 2022
IQE (IQE): New CEO - new engagement with markets IQE's share price has fallen by over 30% since FY21 guidance was reduced in November. However, we believe the downgrade relates primarily to supply chain issues in the smartphone industry, which are likely to be resolved during FY22, rather than any loss of market share. The group is therefore likely to return to growth as the handset and 5G infrastructure markets recover, potentially supporting a share price recovery too. Moreover, new CEO Americo Lemos's extensive network of relationships with global semiconductor manufacturers is likely to lead to more long-term strategic collaborations such as the one with GlobalFoundries announced in October, supporting stronger-than-market growth in the medium term. At current levels IQE's shares are trading at a discount to the mean EV/EBITDA multiples of the sample of companies engaged in manufacturing VCSEL epitaxy. However, we believe share price recovery will require greater visibility of a recovery in the smartphone market and the timing of 5G infrastructure roll-out. Click here to view the full report or here to sign up to receive research as it is published.
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corporate announcement transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.