Update shared on 09 Nov 2025
Fair value Decreased 6.74%Narrative Update on X-FAB Silicon Foundries
Analysts have revised their price target for X-FAB Silicon Foundries downward to EUR 6 from EUR 7. They cite a more conservative outlook on fair value and revenue growth, despite improved profit margins and a lower anticipated future P/E ratio.
Analyst Commentary
Bullish and bearish analysts have recently adjusted their perspectives on X-FAB Silicon Foundries in light of updated market and company-specific developments. Below are the key takeaways from their current outlooks:
Bullish Takeaways- Bullish analysts recognize improved profit margins, which may signal enhanced operational efficiency within the company.
- Recent adjustments to X-FAB's price-to-earnings ratio suggest a more attractive valuation relative to future earnings expectations.
- There remains confidence in the company's ability to maintain a solid financial footing despite market fluctuations.
- Bearish analysts express caution due to a more conservative forecast for revenue growth.
- There are concerns that the company's long-term growth trajectory could be impacted by shifting industry dynamics or broader macroeconomic headwinds.
- The downward revision in price target reflects tempered expectations around fair value and execution risk.
What's in the News
- X-FAB Silicon Foundries released earnings guidance for Q4 and the full year 2025, expecting quarterly revenue between USD 215 million and 225 million, and annual revenue between USD 863 million and 873 million (Key Developments).
- X-FAB reaffirmed its 2025 revenue outlook, maintaining its projection in the range of USD 840 million to 870 million. The company also emphasized its long-term goal of achieving high single-digit average growth across cycles (Key Developments).
- The company announced a leadership transition. CEO Rudi De Winter will step down effective February 6, 2026, with current COO Damien Macq named as his successor and planned future Board member, pending shareholder approval (Key Developments).
Valuation Changes
- The Fair Value Estimate has decreased from €7.36 to €6.86, reflecting a more conservative outlook on the company's valuation.
- The Discount Rate has increased slightly from 11.78% to 12.3%, indicating higher perceived risk or return expectations.
- The Revenue Growth Forecast has declined from 9.81% to 8.21%, showing reduced expectations for future sales expansion.
- The Net Profit Margin has risen from 12.61% to 15.67%, suggesting improved profitability for X-FAB Silicon Foundries.
- The Future P/E Ratio has fallen from 11.46x to 8.80x, implying a lower valuation relative to projected future earnings.
Disclaimer
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