Analysts have slightly increased Soitec’s fair value estimate from €48.47 to €48.65, citing updated market conditions, cautious sentiment on European technology hardware, and recent reductions in price targets due to sector-wide challenges.

Analyst Commentary

Recent street research reflects a mixed sentiment toward Soitec, with lower price targets from several analysts and a generally cautious outlook on the broader European technology hardware sector. Despite these headwinds, certain positive elements continue to support the company's longer-term positioning.

Bullish Takeaways

• Bullish analysts highlight that current valuations, especially based on 2027 estimates, could provide support for Soitec shares. This suggests that downside risk may be limited at these levels.
• The ongoing strength in artificial intelligence markets points to sector resilience and may benefit Soitec's longer-term growth prospects.
• Despite price target reductions, some maintain a Buy or positive rating, reflecting confidence in execution and future potential after recent earnings adjustments.
• The company's unique positioning within the technology hardware supply chain may allow it to capitalize on sector recovery trends when market sentiment improves.

Bearish Takeaways

• Bearish analysts have lowered price targets across several major firms, citing sector-wide challenges and cautious sentiment regarding European technology hardware going into the coming quarters.
• There is reduced confidence in a near-term turnaround, in part due to recent earnings reports from Soitec's key customers.
• Some maintain Neutral or Sell ratings, reflecting concerns that much of the artificial intelligence market strength may not translate directly into benefits for most companies in the group, including Soitec.
• Margin pressure and execution risks remain an overhang. This could constrain share upside despite longer-term structural trends in the sector.

What's in the News

• The board met to consider appointing Julie Galland as the new permanent representative of CEA Investissement on Soitec's Board of Directors and Strategic Committee, replacing François Jacq, effective immediately (Board Meeting, Oct 01, 2025).
• Chief Executive Officer Pierre Barnabé has announced his intention to leave Soitec for personal reasons and will stay in his role until March 31, 2026 to ensure a smooth transition (Executive Changes, CEO).
• At the July 22, 2025 AGM, shareholders rejected the proposal to amend bylaws regarding shareholding disclosure thresholds, with only 60.15% voting in favor, short of the required margin for adoption (Changes in Company Bylaws/Rules).
• Soitec has provided revenue guidance for second quarter 2026, forecasting approximately 50% organic growth compared to first quarter 2026 (Corporate Guidance, New/Confirmed).

Valuation Changes

• The Fair Value Estimate has risen slightly from €48.47 to €48.65, reflecting recent market updates.
• The Discount Rate has increased modestly from 11.92% to 12.1%, indicating a higher risk premium being applied.
• The Revenue Growth projection has risen from 6.03% to 6.86% annually, suggesting improved growth expectations.
• The Net Profit Margin estimate has increased from 10.35% to 10.74%, reflecting a modest enhancement in profitability outlook.
• The Future P/E Ratio has fallen from 25.0x to 24.3x, highlighting lower valuation multiples anticipated by analysts.