Cowen & Co Upgrades Qimonda AG (QI) to Neutral
QI Hot Sheet
Rating Summary:0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 25 | Down: 12 | New: 36
Cowen & Co upgrades Qimonda AG (NYSE: QI) from Underperform to Neutral.
Cowen analyst says, "We still see insolvency as a very real possibility, but with QI stock down 95% since June, and enterprise value now effectively zero, we cannot exclude several potential positives which could limit further downside. Parent Infineon (NYSE: IFX) could be willing to essentially give away its 77% stake to investors; IFX could buy back the remaining shares it doesn't own at a small premium just so it can shut down the business and remove the 'QI overhang' on its own stock; or the German government might forgive any clawbacks on prior incentive grants if the Dresden fab is shut down, which could make QI seem more attractive to a potential buyer. We still do not view the stock as a real investment, but at $0.20 a Neutral rating seems more appropriate than our long-standing Underperform."
Qimonda AG (Qimonda) is a supplier of semiconductor memory products. The Company designs semiconductor memory technologies, and develops, manufactures, markets and sells a variety of semiconductor memory products on a chip, component and module level.
Cowen analyst says, "We still see insolvency as a very real possibility, but with QI stock down 95% since June, and enterprise value now effectively zero, we cannot exclude several potential positives which could limit further downside. Parent Infineon (NYSE: IFX) could be willing to essentially give away its 77% stake to investors; IFX could buy back the remaining shares it doesn't own at a small premium just so it can shut down the business and remove the 'QI overhang' on its own stock; or the German government might forgive any clawbacks on prior incentive grants if the Dresden fab is shut down, which could make QI seem more attractive to a potential buyer. We still do not view the stock as a real investment, but at $0.20 a Neutral rating seems more appropriate than our long-standing Underperform."
Qimonda AG (Qimonda) is a supplier of semiconductor memory products. The Company designs semiconductor memory technologies, and develops, manufactures, markets and sells a variety of semiconductor memory products on a chip, component and module level.
You May Also Be Interested In
- UPDATE: UBS Upgrades Assured Guaranty (AGO) to Buy; Opportunity Opens After Recent Dip on Moody's Review
- UPDATE: UBS Upgrades Westlake Chemical (WLK) to Neutral; Fairly Valued Now
- BMO Capital on NetApp (NTAP): Could Attract Interested Parties At These Levels; Prefers EMC
Create E-mail Alert Related Categories
UpgradesRelated Entities
Cowen & CoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
