(CercleFinance.com) – Jefferies began coverage of Soitec stock on Friday with a ‘hold’ recommendation and a price target of 145 euros, explaining that it foresees a number of short-term difficulties for the manufacturer of semiconductor materials.
If he says he perceives – in the medium term – several catalysts likely to help the group do better than expected by 2026, the broker expects lackluster growth in the shorter term, against a backdrop of deteriorating demand.
According to Jefferies, it is especially the mobile activities which are the most vulnerable in view of the 2023/2024 financial year due to the current low volume of smartphones and inventory adjustments made by customers.
With an EPS forecast for 2023/2024 2% lower than the consensus and a PER of 14x, the broker indicates that he is only considering, at best, a limited revaluation potential in the short term.
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