(Boursier.com) — Soitec rose again by 4% this Friday on the Paris stock exchange, to 142.75 euros, while the group was weighed down at the start of the week in the wake of the presentation of consolidated turnover for the 3rd quarter of the financial year 2023-2024 at 240 ME, down 13% in published data compared to the turnover of 274 ME achieved in the 3rd quarter of 2022-2023. This change results from a decrease of 12% at constant scope and exchange rates and a negative exchange rate effect of 1%.
Despite early signs of recovery seen in the global smartphone market and increasing sales penetration of premium smartphones, inventory adjustment across the supply chain continued to impact revenue.
The objectives for the entire 2023-2024 financial year are revised. Revenue is expected to fall by around 10% at constant scope and exchange rates, compared to a decline of around mid-single digit previously expected. The EBITDA margin is expected to be around 34% compared to 35% previously…
Among the latest broker opinions, Barclays is at ‘market weighting’ on Soitec with an adjusted target of 175 to 160 euros.
Stifel, for its part, reduces its EPS forecasts for the 2024/25 financial year based on the recent reduction in expectations and the postponement of the 2026 financial year to 2027: “Our price target decreases to 165 euros, instead of 190 euros. We still value Soitec using a mix of DCF model (75%) and historical multiples (25%). Based on a more conservative view, we have lowered our utilization assumptions for Soitec factories in France and Singapore, which translates into lower sales and margins, not just for 2024/25, but also beyond… This leads to a revision of sales for 2024/25 of 13.4% and implies a change in EPS of -22%. Our sales estimates for 2023/24 are also revised downwards, to take into account the period now guided by a 10% decline in sales instead of a previous decline of 5% “.
Verdict: “We reiterate our buy rating as we continue to see long-term growth arguments for the stock, aided by cross-sector tailwinds from 5G and electric vehicle development, with the bad news finally behind us ” concludes the analyst.
Since January 1, the stock has lost 15%…
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