Berenberg announced on Monday that it had lowered its price target for Soitec from 180 to 110 euros, while reiterating its buy recommendation on the stock.

In a research note, the financial intermediary explains that it has reduced its forecasts for the French specialist in high-performance semiconductors after the company revised its targets downwards three times since November.

While Berenberg believes that the company's sales target of $2.1 billion remains achievable over the medium term, the analyst stresses that investors will prefer to wait for tangible signs of a return to business growth, rather than give the group the benefit of the doubt.

Berenberg adds that, even on the basis of its lowered forecasts, the stock continues to be cheap, which leads it to maintain its Buy recommendation, noting that its new target still shows upside potential of 26%.

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