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UBS lowered its price target on Soitec (EPA:SOIT) (EURONEXT:SOI) to EUR90.00 from EUR105.00 while maintaining a Buy rating following the company’s fiscal year 2025 results.
The research firm cited the semiconductor materials supplier’s withdrawal of its FY’26 guidance as a key negative factor that likely increased investor concerns about the company’s long-term growth potential.
UBS cut its FY26-28 earnings per share estimates by 20-26% after what it described as "yet another disappointment on top of what has been a testing two years" for both Soitec and its investors.
Despite acknowledging it underestimated the cycle downturn and noting some questions on fundamentals, UBS maintained its Buy rating based on expectations of a cycle recovery in the semiconductor industry.
The firm pointed to Soitec’s valuation of less than 1x 12-month forward price-to-book value versus its historical average of 1.5x as evidence the stock continues to offer "an attractive risk reward" despite recent challenges.
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