(News Bulletin 247) – Jefferies announced on Wednesday that it had raised its recommendation on Soitec to ‘hold’ to ‘buy’ with a price target raised from 145 to 180 euros, representing an upside potential of 20%.
In a research note, the American research department recommends that investors look beyond the next 12 months when looking at the file of the manufacturer of materials for semiconductors.
“Now that Soitec has provided more information on slowing demand for smartphones and reduced inventory, we believe that an important Damocles Sword has disappeared,” he wrote in his note.
“We are skeptical of the management team’s forecast which foresees a recovery in activity in the second half of 2024 and we consider that upward revisions to the objectives are unlikely in the short term”, continues the analyst.
“But we believe the market is ready to look beyond these factors to start considering 2025 enablers such as silicon carbide (SmartSiC) and POI substrate technologies,” Jefferies concludes.
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