BNP Paribas Exane downgrades Soitec stock on prolonged inventory concerns

Published 08/08/2025, 12:04
BNP Paribas Exane downgrades Soitec stock on prolonged inventory concerns

Investing.com - BNP Paribas (OTC:BNPQY) Exane downgraded Soitec (EPA:SOIT) (EPA:SOI) (OTC:SLOIF) from Outperform to Neutral on Friday, while significantly reducing its price target to EUR36.00 from EUR55.00.

The downgrade comes as the research firm expressed concerns about persistent inventory challenges that are expected to impact Soitec’s performance through fiscal year 2026, despite improving growth in the analog segment and rising inventories among several of Soitec’s customers.

BNP Paribas Exane noted that these positive industry trends have not translated into better top-line growth for Soitec, primarily due to the substantial inventory overhang, with silicon-on-insulator (SOI) representing only a small portion of overall customer inventories.

The research firm also highlighted that recent smartphone pull-ins could reshape the eventual recovery expected in fiscal year 2027, potentially resulting in a slower U-shaped rebound rather than a sharp V-shaped recovery.

Soitec, which specializes in semiconductor materials, is now anticipated to experience only a gradual pace of inflection when the market eventually recovers, according to the downgrade note.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.