Positive Long-term Outlook for Siltronic Despite Short-term Challenges

Analyst Constantin Hesse from Jefferies maintained a Buy rating on Siltronic and keeping the price target at €75.00.

Constantin Hesse has given his Buy rating due to a combination of factors including Siltronic’s financial performance and strategic measures. Despite sales and EBITDA being slightly below expectations, the company managed to improve its cash outflow situation and maintain its FY25 guidance, which suggests a stable outlook.
Furthermore, the company’s cost-saving initiatives have helped mitigate some of the financial pressures, and the net debt level, although increased, remains manageable. Hesse anticipates that the current quarter could represent a low point, with expectations for volume trends to improve as inventory levels decrease. These factors contribute to a positive long-term view, supporting the Buy rating.