Soitec lost almost 2% in Paris this morning, as Stifel maintained its 'buy' rating on the stock, with a price target lowered from 200 to 190 euros, due to a downgraded outlook for the semiconductor specialist.

Thus, even though the mobile communications business is booming (with a near-doubling of sales compared to the previous quarter), Stifel estimates that Soitec's sales should decline by 7.5% in the 2024/2025 financial year, leading to a fall in EPS of almost 11% over the same period.

The research firm is also cautious about 2026. While Soitec is targeting sales of $2.1 billion by 2026, Stifel is more modestly targeting $1.8 billion (versus $1.9 billion in its previous estimate).

Nevertheless, Stifel points to long-term growth opportunities for Soitec, including potential boosts from the development of 5G and electric vehicles.

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