Oddo BHF reaffirms its 'outperform' recommendation on Soitec, but lowers its target price from 185 to 180 euros, in the wake of a 5% average reduction in EBITDA forecasts over the next three years (-9% for EPS).

Ahead of the half-yearly results on November 15, the analyst expects results "marked by massive customer destocking in mobile communications", and sees annual guidance at risk in view of the lack of recovery in global smartphone sales.

The transitional phase should not last much longer (signs of stabilization in the smartphone market, new contracts to come, notably in SmartSiC...)', he adds, hoping for a 'return to strong sales growth from the next financial year 2024-25'.

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