Analyst Note| Brian Colello, CPA |
Narrow-moat Infineon reported solid fiscal fourth-quarter results that were toward the high end of its forecast range, while providing an outlook for the December quarter and all of fiscal 2021 (ending September 2021) that was mostly in line with our prior expectations. Like many of its peers, Infineon prospered from a recovery in auto manufacturing that should continue into next fiscal year. We are raising our fair value estimate to EUR 30 per share from EUR 25, mostly due to the time value of money as we roll our valuation model. We view the shares as roughly 10% undervalued today.