Analyst Tobias Fahrenholz of Stifel Nicolaus reiterated a Hold rating on Sensirion Holding AG (1Q3 – Research Report), reducing the price target to CHF68.00.
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Tobias Fahrenholz has given his Hold rating due to a combination of factors surrounding Sensirion Holding AG’s current financial and strategic position. The company presents strong growth opportunities, especially in new business areas like gas leakage detection, which supports its medium-term organic sales growth target of 10-15%. Despite this, there are concerns about higher-than-expected investments in production capacities and clean room facilities, which could lead to below-average free cash flow levels.
Moreover, Sensirion is experiencing a relatively high short-term pricing, with an 18% EV/EBITDA premium compared to peers for FY-25. While the structural growth story and track record are impressive, the current market volatility and need for increased capital expenditure could affect near-term financial performance. Consequently, Tobias Fahrenholz has adjusted the price target from CHF 75 to CHF 68, maintaining a Hold recommendation as investors need to look further out for a more attractive valuation scenario.
According to TipRanks, Fahrenholz is ranked #5072 out of 9162 analysts.
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Sensirion Holding AG (1Q3) Company Description:
Sensirion Holding AG is engaged in the manufacturing of high-quality sensors and sensor solutions for the measurement and control of humidity. Its product range includes liquid flow meters, mass flow meter for gases, carbon dioxide sensors, and others. The firm offers its services and products to various industries such as Industrial, Automotive, and Medical among others.