Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com - Deutsche Bank lowered its price target on SUSS MicroTec SE (ETR:SMHN) to EUR36.00 from EUR41.00 while maintaining a Hold rating on the stock.
The price target reduction follows SUSS MicroTec’s second profit warning this year, issued on Monday, which was triggered by significantly weaker-than-expected margin development in the third quarter.
While the company’s sales were not problematic, reaching approximately EUR118 million and exceeding expectations by 4-5%, profitability fell considerably short of forecasts.
Preliminary third-quarter gross margin was just 33.1%, well below consensus expectations of 38.1% and Deutsche Bank’s estimate of 39.3%, resulting in an EBIT margin of 10.5% compared to consensus and Deutsche Bank estimates of approximately 12.5%.
Deutsche Bank attributed the sharp margin decline of 6.4 percentage points year-over-year to an unfavorable product mix as well as ramp-up costs associated with the company’s new Taiwan fabrication facility.
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