Exane BNP has limited confidence in quick turnaround at Soitec

Soitec SA

08/08/2025 08:11

** "Our confidence in the scope for a turnaround in the next 12 months has fallen," Exane BNP Paribas says as it downgrades Soitec SOIT.PA to "neutral" from "outperform" following its own and its major customers' earnings reports

** Soitec hasn't seen revenue growth despite improving analog trends and rising customer inventories due to significant inventory overhang, Exane says

** Destocking will continue through FY26, and recent smartphone weakness indicates a slow U-shaped recovery in FY27, it adds

** Soitec remains well-positioned for silicon photonics (SiPh) growth, though STMicroelectronics STMPA.PA may be a more direct play there, the broker says

** SiPh adoption pace is uneven and will take time, making it a long-term upside opportunity rather than a near-term catalyst, Exane adds

** It sees limited valuation support despite the stock being down more than 50% in the last 12 months

** Out of 18 analysts covering Soitec, eight rate it "strong buy"/"buy", eight "hold" and two​ "strong sell"/"sell" - LSEG data

(Reporting by Piotr Lipinski)

((piotr.lipinski@tr.com))