FRANKFURT (dpa-AFX Broker) - Deutsche Bank sees the end of the line for the Aixtron share price coming closer. Analyst Michael Kuhn therefore gave up his buy recommendation after a good run of the papers and downgraded them to "hold". Opportunities and risks are now only balanced.

In the share price of the special equipment manufacturer for the chip industry, the conceivable ideal scenario seems to be priced in, argued the expert in a study presented on Wednesday. He therefore sees little room for error, but also does not want to badmouth the prospects. The opportunity for structural growth remains.

The unchanged price target of 33 euros is simply no longer sufficient for a buy recommendation, after the shares had already come quite close to the target. In December, they had reached a high of 32.21 euros since the beginning of 2011. They had approached this level again on Tuesday with a peak of 31.33 euros, so that the distance to the price target was only 1.67 euros or about five percent.

The expert listed two decisive factors that make him generally more cautious for Aixtron: Analyst consensus and the micro-LED business. Analysts had long appreciated the massive growth opportunities in 2022, but expectations have stagnated since September. He sees this as a signal that the air is out in this regard for the time being.

With regard to micro-LED technology, the road could be rocky in 2024. Aixtron has so far only one major order for this technology, which is used, for example, in the production of parts for new types of displays. However, a large part of this is likely to be processed in 2023. Other customers are apparently not yet ready for it - and in the scenario of a possible recession, the introduction is likely to be delayed further.

With a "hold" rating, Deutsche Bank recommends neither buying nor selling the stock based on the expected total return for the next twelve months./tih/bek/mis

Analyzing institute Deutsche Bank.

Publication of the original study: 25.01.2023 / Time not stated in study / CET

First circulation of the original study: 25.01.2023 / 06:35 / CET