Soitec: BofA downgrades stock

(CercleFinance.com) - Bank of America announced on Monday that it had downgraded its recommendation on Soitec shares from 'buy' to 'neutral', with a target price lowered from E130 to E98 (cp: E86, -1%).


In a study of the European technology sector, the analyst justifies his decision by the need to see - in his opinion - the recovery of the smartphone and PC markets confirmed.

Although we are encouraged by Soitec's progress in the RF filter segment, where the company is gaining market share (its piezoelectric on insulator (POI) products have been selected by 10 customers and 10 others are in the process of certification), and consider that it is well positioned in silicon photonics, we believe that market expectations up to 2027 are too high, and are therefore revising our forecasts downwards, BofA explains.

The broker points out that it has reduced its sales estimate by 5%-6% for 2026/2027, i.e. by 8%-10% on its Ebitda target.

BofA also states that it believes Soitec's diversification into SmartSiC substrates is taking longer than expected, a delay which - combined with the current downturn in silicon carbide (SiC) prices - should weigh on the share's valuation.


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