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Soitec’s Strategic Innovations Justify Buy Rating Despite Short-Term Challenges

Soitec’s Strategic Innovations Justify Buy Rating Despite Short-Term Challenges

Bernstein analyst Aleksander Peterc maintained a Buy rating on Soitec SA (0RMTResearch Report) yesterday and set a price target of €135.00.

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Aleksander Peterc’s rating is based on a combination of factors, despite Soitec’s recent revenue miss and lowered guidance. Although there was a significant shortfall in the Auto & Industrial and Edge and Cloud AI segments, the Mobile Communications segment exceeded expectations, indicating potential resilience in certain areas of the business.
Furthermore, Soitec’s innovations in Photonics-SOI for datacenters and Piezo-on-insulators for RF-FEM filters demonstrate promising advancements that could bolster future growth. While the immediate financial outlook may seem challenging, these technological developments might provide strategic opportunities for Soitec, justifying a Buy rating in anticipation of longer-term gains.

According to TipRanks, Peterc is ranked #4540 out of 9370 analysts.

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