Soitec SA, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Aleksander Peterc from Bernstein reiterated a Buy rating on the stock and has a €74.00 price target.
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Aleksander Peterc has given his Buy rating due to a combination of factors that suggest potential for Soitec SA’s recovery and growth. Despite recent revenue challenges, particularly in the RF-SOI segment and a weaker smartphone market, Peterc notes that the company’s Edge and Cloud-AI division has shown resilience with positive growth. This indicates potential areas of strength that could support the company’s recovery.
Furthermore, Peterc highlights the strategic opportunities presented by Soitec’s new CFO, who may implement measures to enhance cash generation through operational efficiencies. Although the current market conditions are challenging, the expectation of reaching a cyclical bottom and the potential for improved financial metrics in the near term underpin the Buy rating. The DCF-based valuation suggests a price target that reflects confidence in the company’s long-term prospects.
In another report released yesterday, UBS also maintained a Buy rating on the stock with a €80.00 price target.