On Monday, Berenberg reaffirmed its Buy rating on Soitec (SOI:FP) (OTC: SLOIF) stock, maintaining the EUR130.00 price target for the semiconductor materials manufacturer. The endorsement follows a recent meeting with Soitec's management on July 24, after the company published its first-quarter sales data. The report highlighted weaker sales than anticipated for the quarter.
Soitec's management has provided guidance for a considerable sequential improvement in the second quarter. The company also expects year-over-year growth in the second half of the fiscal year to compensate for the earlier shortfall in sales. This outlook suggests a recovery on the horizon for Soitec, following the initial sales dip in the first half.
The positive forecast is bolstered by expectations of a rebounding smartphone market, which is anticipated to contribute to Soitec's growth. Additionally, the introduction and adoption of new products are projected to drive further expansion for the company. These factors are seen as key contributors to Soitec's potential success in the upcoming fiscal year 2026.
The analyst's comments underscore a belief in Soitec's capacity to navigate through the initial sales challenges and emerge with strong performance in the latter part of the fiscal year. This sentiment is based on the company's strategic expectations for market recovery and product innovation.
Soitec specializes in the design and production of innovative semiconductor materials. These materials are crucial for various electronic and energy-related applications, including smartphones, where Soitec expects to see increased demand contributing to its growth trajectory.
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