Update shared on 30 Nov 2025
Fair value Decreased 26%Analysts have lowered their price target for Soitec from €48.35 to €36.00, citing cautious sector outlooks and recalibrated growth expectations.
Analyst Commentary
Analyst opinions on Soitec remain mixed as the company faces both headwinds and selective areas of optimism in its near-term outlook. Below are the key takeaways from recent research coverage.
Bullish Takeaways- Some analysts note that current valuations, especially based on long-term estimates through 2027, could offer support for the stock if sector sentiment improves.
- Strength in artificial intelligence markets suggests a foundation for future demand, providing a potential catalyst for Soitec’s product lines over time.
- Stable Neutral or Equal Weight ratings indicate that while growth is muted in the near term, the company's competitive position within the semiconductor industry remains intact.
- Several analysts have reduced price targets significantly, citing muted growth expectations and challenging industry conditions affecting near-term execution.
- Concerns remain about limited direct benefits from artificial intelligence trends for Soitec compared to select sector peers.
- Analysts caution against sector-wide softness in European technology hardware, emphasizing that continuing macroeconomic uncertainty could further pressure valuation.
- Some maintain a Sell rating, signaling skepticism over the pace and reliability of any potential recovery in demand.
What's in the News
- Soitec provided revenue guidance for the third quarter of 2026, anticipating mid-to-high single-digit sequential organic growth. (Corporate Guidance)
- Pierre Barnabé, Chief Executive Officer, announced plans to leave Soitec for personal reasons but will remain in his role through March 31, 2026 to support a smooth leadership transition. (Executive Changes)
- Soitec and CEA demonstrated that FD-SOI substrates offer substantial protection against advanced fault injection attacks, helping address emerging automotive cybersecurity standards. (Strategic Alliances)
- An upcoming Board Meeting on November 19, 2025 will approve revenue for the second quarter and half-year results of fiscal year 2026. (Board Meeting)
- A Board Meeting on October 1, 2025 will consider the appointment of Julie Galland as the new representative of CEA Investissement on the Board, succeeding François Jacq. (Board Meeting)
Valuation Changes
- Consensus Analyst Price Target has fallen significantly from €48.35 to €36.00, reflecting increased caution in the sector outlook.
- Discount Rate remains unchanged at 12.3%, which signals steady risk assessments among analysts.
- Revenue Growth assumptions have risen from 0.90% to 2.40%, which indicates slightly more optimistic expectations for future top-line expansion.
- Net Profit Margin estimates have edged down, moving from 10.11% to 9.76%, which implies a modest decline in profitability forecasts.
- Future P/E projection has decreased from 25.91x to 21.72x, suggesting lower anticipated valuation relative to future earnings.
Disclaimer
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