Berenberg cuts X-Fab to 'hold' from 'buy' to lock in share gains

X-Fab Silicon Foundries Europese Vennootschap

05/05/2026 06:46

** Berenberg downgrades European semiconductor foundry X-Fab XFAB.PA to "hold" from "buy" to lock in gains following a strong share run and a clouded second-quarter outlook

** Brokerage says it will accept "the opportunity to take profits" as the stock hit its 6 euros target

** Profitability disappointed in the first quarter with gross margins contracting heavily due to softness in automotive

** Broker notes short-term automotive demand remains constrained by inventory adjustments leading to a cautious projection for the next quarter

** Despite the current softness, X-Fab's strategic focus on automotive, industrial and medical sectors should benefit from sticky customers with long-term visibility, Berenberg adds

** Up to the previous session's close, shares were up 22.6%​ YTD

** Out of 8 analysts that cover X-Fab, two rate the stock "strong buy" or "buy,"​six rate "hold" and no analysts rate the stock "strong sell" or "sell" - LSEG data

 (Reporting by Leo Marchandon in Gdansk)

 ((leo.marchandon@thomsonreuters.com))