Deutsche Bank downgraded Ams Osram to "hold" from "buy" after the company issued a weaker first-quarter outlook that's about 15% below consensus. The move sent shares plunging more than 4% on Wednesday, even as the brokerage maintained its price target at CHF9.50. Analysts cited a more balanced risk-reward outlook following the disappointing guidance.

The downgrade reflects mounting cost pressures, with Deutsche Bank estimating rising input costs will have a €60 million negative impact on cost of goods sold in 2026. This comes despite Ams Osram's €570m sale of its non-optical sensor business to Infineon. Additionally, an auto market slowdown in China has intensified pricing pressure on the company's core LED business.

Deutsche Bank slashed its 2026 adjusted EBITDA forecast to €466 million from €532 million, citing combined effects of rising costs, disposals, and foreign-exchange trends. The brokerage now expects Ams Osram to return to its previous €600 million EBITDA run rate only in 2028 after its "Simplify" cost-reduction program takes hold.