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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.
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