Q2‘26 first take: Beat on Sales and Adj. EBITDA, Solid Q3 guide, continued progress on new growth initiatives

Research evidence excerpt

Q2‘26 first take: Beat on Sales and Adj. EBITDA, Solid Q3 guide, continued progress on new growth initiatives

Craig A McDowell AC Europe Equity Research

(44-20) 7742-4576 04 August 2026 J P M O R G A N

craig.mcdowell@jpmorgan.com

Investment Thesis, Valuation and Risks

ams-Osram (Overweight; Price Target: CHF24.40)

Investment Thesis

ams-Osram is a smartphone/consumer and automotive exposed semiconductor/LED and

lighting company, but has announced plans to apply its core Micro LED technology to Data

Center Interconnect (as an alternative to laser-based optics) and Smart Glasses. Core end-

markets in Automotive, Industrial and Consumer are all showing signs of a recovery with

volumes improving and pockets of more benign pricing; however, new category growth will

begin to support through 2026 and continue to the end of the decade, with a relatively lighter

capital cost compared to history. We move to Overweight on the shares, as we see improving

growth and financial profile and investor sentiment (as balance sheet issues are addressed).

Valuation

We value ams-Osram on 2028 EBIT estimates, applying a 12.5x multiple (a ~25% discount

to European peer group, previously 13.0x), which yields a new December 2027 price target

of 24.40 CHF (previously 23.60 CHF). Our estimates are pro forma for the announced

divestments and our EV bridge is based on the current balance sheet but also factors in the

expected proceeds from the Infineon disposal (closing in mid-2026).

Risks to Rating and Price Target

Downside risks include:

• Slower or lower adoption of Micro LED data center solution (or lower market share for

ams-Osram than assumed)

• Slower or lower adoption of Smart Glasses (or lower market share for ams-Osram than

assumed)

• Increased competitive pressure in core Automotive market