Analyst Constantin Hesse from Jefferies maintained a Buy rating on Siltronic (0R8P – Research Report) and keeping the price target at €90.00.
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Constantin Hesse has given his Buy rating due to a combination of factors that suggest a positive outlook for Siltronic despite current challenges. The company has confirmed its preliminary results for 2024 and its outlook for 2025, indicating that while demand remains subdued due to high wafer inventories, the end-markets are expected to grow by approximately 7% in 2025.
Furthermore, Siltronic’s financial position remains strong, with a cash reserve of €664 million, additional undrawn loans of €180 million, and prepayment refunds of €57 million expected in 2025. These factors provide a solid liquidity buffer, reducing the downside risk. The stock is currently trading at about 0.7 times its forward book value, which suggests limited downside and potential for upside as market conditions improve.