Citi cuts Soitec, Siltronic on weak end-markets, high inventories

Soitec SA

15/07/2025 09:21

** Citi cuts its ratings on Soitec SOIT.PA and Siltronic WAFGn.DE as it sees the wafer suppliers facing further pressure from weak end-markets and high client inventories

** It prefers Siltronic over Soitec, saying it is "a cleaner cyclical play with more diversified end-markets and stronger exposure to leading-edge applications"

** Still, it cuts its rating on Siltronic to "hold" on further inventory digestion and LTA price risk

** It moves Soitec to "sell" as it cuts its 2026-27 EPS expectations by 27% and 35% below consensus, respectively, citing weakness in mobile and automotive end-markets

 (Reporting by Johan Bodinier)

 ((johangeorgesroger.bodinier@thomsonreuters.com))