Wednesday, June 25, 2008
Analyst Daniel Berenbaum of Cowen & Co initiates coverage of Qimonda AG (QI) with an "underperform" rating.
In a research note published this morning, the analyst mentions that despite internal initiatives, the company’s DRAM business might not become profitable in the near future due to stiff competition. If Qimonda is forced to sell its stake in Inotera and is unable to replace it with a complementary low-cost capacity, it would end up being operated as a marginalized player in the industry, the analyst says. A strategic acquirer might be unwilling to pay a premium to Qimonda’s stock on account of the company's high-cost manufacturing base, Cowen & Co adds.
By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved
|
