Stifel is maintaining its 'buy' rating on Soitec shares, with its target price lowered from 200 to 190 euros, due to a revised downward outlook for the semiconductor specialist.

Even though the mobile communications business is booming (with sales almost doubling compared to the previous quarter), Stifel expects Soitec's sales to fall by 7.5% in the 2024/2025 financial year, resulting in an EPS decline of almost 11% over the same period.

The research firm is also cautious about 2026. While Soitec is targeting sales of $2.1 billion by 2026, Stifel is more modestly targeting $1.8 billion (versus $1.9 billion in its previous estimate).

Nonetheless, Stifel points to long-term growth opportunities for Soitec, including potential boosts from the development of 5G and electric vehicles.

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