In a report released today, Constantin Hesse from Jefferies maintained a Hold rating on Siltronic, with a price target of €45.00.
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Constantin Hesse’s rating is based on several factors, including Siltronic’s recent financial performance and market conditions. The company’s Q2 results exceeded expectations, primarily due to a delay in depreciation and amortization activation, which positively impacted EBITDA. However, despite this beat, the sales guidance for FY25 was revised downwards, influenced by foreign exchange rate adjustments, while the EBITDA margin remained unchanged.
Demand for wafers continues to be weak, with high inventory levels and delays in volume shipments from Q3 to Q4, indicating potential challenges ahead. Additionally, the company’s net cash flow was negative, and net debt increased, which raises concerns about financial stability. Although there is potential for recovery in Q4 and the revised depreciation and amortization figures might have a positive effect, uncertainties such as the US/EU tariff agreement still pose risks, leading to a cautious Hold rating.
In another report released on July 18, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a €49.00 price target.