UBS Upgrades AMS OSRAM Target Price to CHF 14.8 on Back of Growth Catalysts and Strategic Moves

AMS OSRAM, the Austrian semiconductor and sensor giant, saw its shares surge after UBS raised its target price from CHF 13.5 to CHF 14.8, citing a series of positive developments and growth catalysts. The upgrade reflects renewed confidence in the company’s turnaround, with UBS highlighting several factors expected to drive both revenue and profitability in the coming quarters.

 

Key Highlights:

 

Revenue Momentum: UBS notes that AMS OSRAM’s auto and industrial segments are outperforming seasonal trends in Q2 for the first time since early 2023. The bank expects the company’s revenue to hit a low in Q2 before rebounding sequentially from Q3 onward.

 

iPhone Socket Win: AMS OSRAM’s recent win to supply sockets for the iPhone is projected to double quarterly revenue from this segment to €40–60 million in Q3 2025, a significant year-on-year jump.

 

Strategic Divestments: UBS anticipates announcements on potential asset sales that could accelerate deleveraging and generate up to €500 million, further strengthening the balance sheet.

 

Legal and Financial Tailwinds: A favorable court verdict in an ongoing appraisals case and the exercise of minority options could provide additional upside for the stock. UBS also highlights the company’s likely exit from its Kulim fab sale-and-leaseback arrangement, which would remove a €429 million liability and reduce cash interest expenses.

 

Market Reaction: Shares of AMS OSRAM jumped more than 12% following the upgrade, marking their best day since February, as investors reacted positively to UBS’s bullish outlook and the company’s improving fundamentals.

 

With these catalysts in play, UBS underscores a favorable environment for AMS OSRAM, positioning it for a strong recovery and renewed investor interest.

 

Source: TradingView (Reuters), MarketScreener, Investing.com