Update shared on 10 Nov 2025
Fair value Increased 8.63%Siltronic's analyst price target has increased from €49.76 to €54.06, as analysts cite improved recovery prospects and a strengthened financial outlook. This outlook is supported by higher projected revenue growth and profit margins.
Analyst Commentary
Recent analyst activity around Siltronic reflects a mix of optimism regarding the company’s recovery prospects and caution about potential headwinds. Analysts have updated their price targets in response to new financial data and shifting industry dynamics, highlighting both opportunities and risks for the company’s future performance.
Bullish Takeaways
- Bullish analysts have raised their price targets, citing a lack of negative catalysts and anticipating a drawdown in customer wafer inventories that could drive higher demand.
- Several analysts see volumes recovering over the next few years. This improves the outlook for both top-line growth and profitability.
- Current share prices are regarded as being near historical lows. This suggests potential for upward revaluation if execution aligns with expectations.
- Forecasts point to gradually strengthening revenue and margins. This indicates that the trough in performance may have passed.
Bearish Takeaways
- Bearish analysts remain cautious, maintaining Neutral ratings and highlighting uncertainty around near-term recovery despite raised price targets.
- Concerns linger over the pace at which market demand for wafers will rebound. This puts pressure on the timing and sustainability of improved margins.
- Even with upward adjustments in targets, some analysts see the company as facing execution risks related to global semiconductor industry cycles.
What's in the News
- Jefferies lowered Siltronic's price target to EUR 70 from EUR 75, while maintaining a Buy rating. The firm noted that the Q3 report may have marked a potential bottom in performance, with volumes expected to recover by 2026 (Jefferies, Periodical).
- Siltronic confirmed earnings guidance for fiscal year 2025, projecting sales in the mid-single digit percent range below the previous year and a significant decline in EBIT, largely due to the start of depreciation for the new Singapore fab (Key Developments).
- Siltronic AG has entered a strategic partnership with cosine to supply high-quality 300 mm silicon wafers for ESA's NewAthena space telescope, which will be the largest X-ray telescope ever built and will rely on Siltronic’s technology for its advanced X-ray optics (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen from €49.76 to €54.06, reflecting a more positive market outlook.
- Discount Rate increased slightly from 9.81% to 9.98%, suggesting a higher risk premium applied by analysts.
- Revenue Growth expectations have improved, moving from 6.02% to 7.40%.
- Net Profit Margin experienced a notable increase from 0.88% to 11.78%, indicating stronger anticipated profitability.
- Future P/E ratio dropped significantly from 139.26x to 11.07x, which suggests a more attractive valuation based on earnings forecasts.
Disclaimer
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