On Friday, Jefferies, a global investment banking firm, downgraded the stock rating for Aixtron SE (AIXA:GR) (OTC: AIXXF), a provider of deposition equipment to the semiconductor industry, from Buy to Hold. Accompanying this rating change, the firm also reduced the price target for Aixtron's shares to EUR16.00 from the previous target of EUR27.00.
The downgrade comes after Aixtron SE's management provided financial guidance for fiscal year 2025. While the guidance was acknowledged, Jefferies expressed concerns about the prospects for fiscal year 2026. The firm pointed out that while the weakness in silicon carbide (SiC) is widely recognized and likely reflected in the current stock price, the impact of the postponed gallium nitride (GaN) ramp-up, now expected in 2026-27, may not be fully accounted for by the market.
Jefferies highlighted the low visibility of orders for the next year as a significant factor in their decision. This uncertainty makes it challenging for the firm to build confidence in a potential rebound for Aixtron in fiscal year 2026. The analyst's commentary suggests that without clearer signs of recovery in the SiC and GaN segments, the stock's upside could be limited.
Aixtron's stock adjustment reflects the firm's anticipation of the company's future performance, considering the delayed GaN ramp and current market conditions for SiC products. Jefferies' revised price target of EUR16.00 represents a new valuation based on these factors and the company's provided guidance.
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