Jefferies cuts Soitec to 'underperform' on valuation disconnect

Soitec SA

10/06/2026 07:21

** Jefferies downgrades French semiconductor materials supplier Soitec SOIT.PA to "underperform" from "hold", saying delayed revenue acceleration leaves the stock overvalued
** The brokerage raises its price target by 89% to €85 to reflect higher peer multiples but warns the share price has run far ahead of its fair value
** Says the stock, up 504% year-to-date, has been "carried up by the wider AI and optical thematic to an extent which has disconnected from fundamentals"
** Expects demand for photonics wafers to stay subdued until 2028 given limited early adoption of co-packaged optics, where optical engines are packaged with chips
** Adds a prolonged inventory correction for radio-frequency wafers will weigh on growth through FY 2028 amid falling smartphone shipments and higher memory prices
** Of 16 analysts covering Soitec, four rate the stock "strong buy" or "buy", 10 "hold" and two​"strong sell" or "sell" - LSEG data
     

 (Reporting by Lucie Barbier)
 ((Email: lucie.barbier@thomsonreuters.com))