BofA upgrades Soitec to buy and lifts price target to €300
Bank of America Securities raised its rating on French chip‑materials maker Soitec from neutral to buy and increased its price target to €300, up from €152. The upgrade followed the broker’s view that Soitec holds over 90% of the market for silicon‑photonic wafers and that demand is accelerating. BofA also projected strong revenue and earnings growth from long‑term contracts and a planned Singapore fab expansion. Risks noted include a possible slowdown in AI‑related data‑center spending and competition from other technologies.
Why it matters
The higher target and upgrade could attract new buying interest, potentially supporting Soitec’s share price. BofA’s earnings‑per‑share forecasts for fiscal 2027‑2029 are substantially above prior expectations, indicating a possible re‑rating of the stock by investors.
Key facts
- 1Soitec shares rose about 7% to €163.45 in Paris on the day of the upgrade. ideal-investisseur.fr
- 2BofA raised its price target for Soitec to €300, up from €152. investing.com
- 3BofA expects photonics wafer revenue to grow 172% in fiscal 2027, 74% in fiscal 2028 and 57% in fiscal 2029. investing.com
- 4BofA lifted its EPS forecast to €1.61 for fiscal 2027, €5.57 for fiscal 2028 and €10.62 for fiscal 2029. investing.com
- 5BofA forecasts gross margins of 29% in fiscal 2027, 39% in fiscal 2028 and 44% in fiscal 2029. investing.com
- 6BofA anticipates a €700 million Singapore factory extension that would add 1 million 300 mm wafers per year. investing.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.