Soitec: Morgan Stanley downgrades, return of red

(Boursier.com) — Soitec begins the session down 3.1% to 96.8 euros on the Paris market. Morgan Stanley, in turn, downgraded the file to ‘online weighting’ while cutting its target from 173 to 102 euros. A decision which follows the reduction of the innovative semiconductor materials specialist’s forecasts for the 2025 financial year, with the ongoing inventory correction continuing to impact sales. The bank has “significantly” cut its revenue and profit estimates for fiscal years 2025 and 2026 as it expects R&D costs to remain stable as new projects are “mothballed.”
Longer-term investors may remain positive about the opportunities offered by SmartSiC and POI products, as well as a potential entry into the silicon photonics sector, MS points out.