Siltronic: Buy Rating Reaffirmed on Solid Positioning, Manageable Leverage and Improving AI-Driven Demand Despite Near-Term Headwinds

Constantin Hesse, an analyst from Jefferies, maintained the Buy rating on Siltronic. The associated price target is €70.00.

Constantin Hesse has given his Buy rating due to a combination of factors tied to Siltronic’s operational performance and medium‑term outlook. He views Q1 as essentially in line despite minor misses on sales and EBITDA, especially given volatile D&A, and notes that AI‑related demand is steadily improving even if near‑term constraints at memory customers and elevated 200mm inventories temper the immediate growth picture.

Hesse also points to supportive elements such as a meaningful hedging gain on electricity‑linked oil components, confirmation of FY26 guidance, and a capital structure that remains manageable with net leverage around 2.8x EBITDA despite a rise in net debt. In his view, the recent share price strength, driven by robust signals from chip manufacturers, is justified by Siltronic’s solid positioning in the wafer market, and he expects the company to benefit as cyclical headwinds ease, which underpins his positive stance on the stock.

According to TipRanks, Hesse is a 4-star analyst with an average return of 11.2% and a 46.95% success rate.