Morgan Stanley downgrades Silan Micro stock rating to Underweight on margin concerns

Published 25/08/2025, 12:40
Morgan Stanley downgrades Silan Micro stock rating to Underweight on margin concerns

Investing.com - Morgan Stanley downgraded Hangzhou Silan Microelectronics Co Ltd (SS:600460) from Equalweight to Underweight on Monday, while lowering its price target to RMB20.00 from RMB22.50.

The downgrade comes despite Silan Micro’s strong revenue growth of 20% in the first half of 2025, which outpaced the broader industry growth of 4-5% during the same period.

Morgan Stanley cited concerns about the company’s margin and earnings outlook, pointing to ongoing capacity expansion of mature semiconductor nodes across China.

This expansion is leading to declining pricing and intensifying competition in the sector, according to the investment bank’s analysis.

The new price target of RMB20.00 represents a reduction of approximately 11% from the previous target of RMB22.50 set by Morgan Stanley.

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