FRANKFURT (dpa-AFX) - The months-long recovery of Siltronic shares was dampened on Tuesday. Following a disappointing outlook, the shares of the wafer manufacturer fell by more than ten percent at the start of trading, dropping to their lowest level since mid-December. Most recently, the shares fell by 7.5 percent to 85.35 euros, taking last place in the MDax. The mid-cap index fell by 0.6 percent.

Siltronic anticipates a significant decline in operating profit due to persistently weak demand. As customers continue to reduce their inventories, earnings before interest and taxes are likely to be significantly below the previous year's figure. Turnover is likely to stagnate. The Executive Board expects delivery volumes to be postponed further into the future. In addition, the level of depreciation is likely to double.

Analysts were disillusioned. The weakness continues and could ultimately also put pressure on sales prices, wrote expert Harry Blaiklock from the major Swiss bank UBS.

Siltronic's outlook is weak and reflects a recovery in the end markets that is less strong than expected, wrote analyst Constantin Hesse from investment house Jefferies. In addition, there are still large inventories on the customer side. The consensus estimate for the 2024 operating result is now likely to fall by 15 to 20 percent. However, the expert added that the medium-term prospects for the company are solid.

Like UBS expert Blaiklock, analyst Tim Wunderlich from Hauck Aufhäuser Investment Banking currently recommends selling Siltronic shares. The Group is currently ramping up new capacities at a time when customers' destocking is weighing on demand and there is less demand on the market in the consumer sector and for the Internet of Things anyway, Wunderlich wrote.

The Management Board also intends to reduce the dividend for the past financial year to EUR 1.20 per share. This is less than half of the EUR 3.00 paid for the 2022 financial year and below analysts' expectations.

The long-term upward trend in Siltronic's share price has also been shaken by Tuesday's slide. The shares have gained almost half their value since the interim low in mid-May last year. The MDax has lost a good five percent in this period.

Looking at the chart, the much-noticed 200-day moving average has been pointing upwards since the end of May last year and is still below the current price. However, the short and medium-term picture has clouded over as a result of the price slide. Siltronic's share price has broken through the 21-day and 50-day lines to the downside. This means that the trends in these periods are pointing downwards./la/mis/stk