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Analysts have lowered their fair value estimate for Soitec from approximately €51.28 to €48.47. This adjustment is due to cautious sentiment around European technology hardware and ongoing end market pressures, as reflected in recent price target reductions.

Analyst Commentary

Recent analyst updates for Soitec reflect a cautious atmosphere surrounding European technology hardware, with several firms adjusting their outlook and lowering price targets. The assessments highlight diverging views on valuation support, future growth, and ongoing challenges, resulting in both bullish and bearish perspectives from the analyst community.

• Bullish analysts point to Soitec's long-term valuation on 2027 earnings estimates as a potential source of support. They suggest there may be room for recovery if near-term pressures ease.
• Signals of continued strength in the artificial intelligence segment are noted. This could drive demand for Soitec's products in the coming years, even as the broader group sees less immediate benefit.
• Some analysts maintain a Buy rating, reflecting confidence in Soitec's underlying business model and its ability to rebound as market conditions improve.
• Recent downward price target adjustments still leave targets well above current trading levels. This indicates that upside may exist if execution improves.

• Bearish analysts emphasize persistent end market pressures, with high client inventories and challenging demand trends continuing to weigh on revenue growth outlooks.
• Several price targets have been substantially reduced. This reflects a reassessment of sector prospects and a more cautious stance on short- to mid-term performance.
• Some have downgraded Soitec's rating, citing limited near-term catalysts and concerns about a slower than expected turnaround following weak customer earnings reports.
• Bears also highlight downside risk from ongoing market caution, particularly in European technology hardware. They anticipate that downward earnings revisions may continue in the near future.

What's in the News

• The Board of Directors will consider appointing Julie Galland as the new permanent representative of CEA Investissement on the Board and Strategic Committee, replacing François Jacq, effective immediately (Board Meeting).
• Pierre Barnabé, CEO of Soitec, has announced his intention to leave the company for personal reasons. He is committing to stay in his role until March 31, 2026, to ensure a smooth transition (Executive Changes, CEO).
• Soitec has provided revenue guidance for the second quarter of 2026, projecting approximately 50% organic revenue growth compared to the first quarter of 2026 (Corporate Guidance, New/Confirmed).
• A proposed amendment to Soitec's bylaws regarding shareholder disclosure thresholds did not pass at the July 22, 2025 AGM, with only 60.15% of votes in favor (Changes in Company Bylaws/Rules).

Valuation Changes

• The Fair Value Estimate has decreased from €51.28 to €48.47, representing a modest reduction in projected worth.
• The Discount Rate has fallen slightly from 12.1% to 11.92%.
• Revenue Growth has remained essentially flat at 6.03%.
• The Net Profit Margin holds steady at approximately 10.35%.
• The Future P/E Ratio has decreased from 26.55x to 24.98x.