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Infineon Hit By Bernstein Downgrade

Jennifer Lynn

Sanford C. Bernstein downgraded shares of Infineon Technologies AG (ETR:IFX) to a "Neutral" rating on Wednesday, with a $15.22 price target on the stock.

Infineon Technologies AG shares traded down near 3 percent on Wednesday.

The company recently launched a trio of new 3D image sensor ICs with Pmdtechnologies Gmbh in the companies' jointly-developed REAL3 family. Pmd's time-of-flight (ToF) sensors are integrated with its distance-measurement technology and Infineon's manufacturing capabilities.

Infineon Technologies is one of the major players in the 3D sensor market.

According to a trends and forecast report by Markets and Markets, the 3D sensor market is expected to reach $3.3 billion by 2020, growing at a CAGR of 25.51 percent between 2015 and 2020.

New technology advancements due to R&D efforts have made the 3D sensor market one of the most prominent segments in the industrial sector. The 3D sensing technology has a major role to play in the semiconductor industry due to its cost-effective matrix which results in the longer lifespan of products and systems along with greater reliability, according to the report.

Presently, North America holds the largest market size in terms of value; while the APAC region is expected to grow at the highest CAGR in this market. Europe, including Germany and the U.K., is a promising market for 3D sensors.

"The competitive landscape of the market indicates a number of new product launches and small scale collaborations, agreements, and partnerships across the value chain, with important technology providers present around the globe. Major electronics players are collaborating with small-scale technology providers to gain a significant share in this market," according to Markets and Markets.

Infineon has a 50-day moving average price of $14.20 and a 200 day moving average price of $12.31.

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