AMS-OSRAM stock crashes 42% as earnings doubts deepen and analysts retreat
Shares in AMS-OSRAM have plummeted, closing at €7.97—a 42% drop from their 52-week high. The decline follows a string of downgrades by major banks, which now question the company’s ability to deliver sustainable earnings growth. Investor confidence appears to be fading as doubts grow over its financial stability and future prospects.
The company’s third-quarter revenue narrowly beat forecasts, but its outlook for the final quarter disappointed. Analysts had expected a stronger adjusted EBITDA margin, yet AMS-OSRAM projected just 17.5%, falling well short of market hopes. Critics argue that underlying margins remain weak once one-off gains are stripped out, casting doubt on the true strength of its profitability.
Without clear evidence of organic margin growth and a solid plan to address its debt maturities, AMS-OSRAM’s recovery prospects look limited. The shift in analyst sentiment and falling share price signal that investors are waiting for concrete improvements before reconsidering the stock. For now, the company’s valuation remains under pressure amid persistent fundamental concerns.
