DB downgrades X-Fab to 'hold' on auto weakness

Melexis NV

04/11/2025 07:54

** Deutsche Bank downgrades semiconductor foundry X-Fab XFAB.PA to "hold" from "buy", pointing to soft bookings and a weaker 2026 outlook

** The brokerage notes weak orders, which fell 25% year-on-year in Q3, from the Belgian and German automotive customers

** This automotive weakness is partly linked to high inventory at major client Melexis MLXS.BR, the broker says

** X-Fab said it expected a weak start in 2026, which DB called "disappointing"

** DB cuts its 2026 sales growth forecast to 2% from 8% and lowers its PT by 20% to EUR 6

** The downgrade also reflects a recent CEO change and increasing risks around the company's lack of more productive 300mm wafer manufacturing lines, DB says

 (Reporting by Nathan Vifflin in Gdansk)

 ((nathan.vifflin@thomsonreuters.com; +48 58 769 67 13;))