Soitec: UBS begins monitoring

(Boursier.com) — Soitec climbed timidly by 1.6% to 162.5 euros at midday while UBS began monitoring the value with a ‘buy’ notice and a target of 213 euros. The broker anticipates revenue growth of 20% per year during the period 2022-2026, thanks to the growing penetration of 5G. The increased size and productivity should in turn drive profitability, which will translate into better cash generation to fund the company’s ambitious capacity expansion plans. On the other hand, the broker thinks that the recent appointment of a CEO who is relatively new to the semiconductor field creates some short-term uncertainty, while the pipeline of new products such as SiC will take longer to arrive. , generating only a limited contribution from sales by 2026.