Soitec rises after MS upgrades on silicon photonics growth

Soitec SA

26/03/2026 08:36

** Shares of Soitec SOIT.PA rise 2% after Morgan Stanley upgraded the French semiconductor materials manufacturer to "overweight" from "equal weight," citing growing momentum in optical connectivity

** The broker doubles its price target to 70 euros, saying the shift toward silicon photonics offers a stronger margin profile than Soitec's legacy product mix

** Morgan Stanley adds that a multiyear reset in radio-frequency materials sets the stage for a stronger optical growth story, even as the near-term mobile outlook remains subdued

** The brokerage notes that silicon photonics is gaining traction as data-centre connectivity becomes a more critical bottleneck amid strong revenue growth at foundry players

** "As silicon photonics scales, we believe Soitec is increasingly exposed to a higher-growth, higher-margin opportunity that is still underappreciated in the shares," Morgan Stanley said

** Of the 17 analysts covering Soitec, six rate the stock "strong buy" or "buy," nine rate it "hold," and two rate it "strong sell" or "sell," according to LSEG data

 (Reporting by Lucie Barbier)

 ((Email: lucie.barbier@thomsonreuters.com))