Berenberg downgrades Soitec as core product sales weaken

Soitec SA

03/06/2025 06:46

** Berenberg cuts French semiconductor wafer maker Soitec SOIT.PA to "hold" from "buy," citing ongoing weakness in radio-frequency silicon-on-insulator (RF-SOI) sales and lack of positive short-term catalysts

** Soitec's core RF-SOI product faces ongoing headwinds from customer inventory reductions and node shrinkage, which limit demand growth, Berenberg says

** It expects Soitec's margins to contract further in FY 2026 due to operational deleverage and a weakening US dollar

** "With RF-SOI inventory reductions potentially extending beyond this year, we see a lack of short-term catalysts," the broker adds

** Out of 19 analysts that cover Soitec, 11 rate the stock "strong buy" or "buy," ​eight rate it "hold"

 (Reporting by Hugo Lhomedet)

 ((Hugo.Lhomedet@thomsonreuters.com;))