Berenberg initiates Elmos with "buy" as it transforms into "fabless" chipmaker
** Berenberg initiates coverage of German automotive chip supplier Elmos Semiconductor, 
ELG rating it "buy" , citing the outsourcing of its wafer fabrication plant, transforming into a "fabless" chipmaker
** The broker says Elmos's sale of wafer fabrication plant in December 2024 completes its shift to a "fabless" business model, allowing it to grow with lower capital intensity and focus on research and development
** Berenberg forecasts Elmos's capital expenditure to sales ratio to fall to 7% in 2027, leading to an doubling of returns on invested capital to 20% by 2027
** Berenberg forecasts the company's top-line growth to accelerate and reach double-digits by 2027, from the structural trend of rising semiconductor content in automotives and a backlog of design wins
** Out of 6 analysts that cover Elmos Semiconductor SE, four rate the stock "strong buy" or "buy," two rate "hold" and no analysts rate the stock "sell"
