KBC downgrades X-FAB citing near-term pressure on earnings

X-Fab Silicon Foundries Europese Vennootschap

28/05/2026 09:49

** KBC Securities downgrades European chipmaker X-FAB XFAB.PA to "reduce" from "hold" as the recent share price rally outpaces near-term earnings prospects
** The broker raises its TP to 8 euros but notes "near-term earnings remain under pressure" even as the current valuation increasingly reflects the long-term narrative
** KBC points out the investment combines structural upside from legacy-node chip scarcity and electrification with cyclical headwinds from low factory utilisation
** The brokerage notes growth drivers are increasingly diversifying beyond automotive applications into industrial recovery and artificial intelligence data centres
** KBC adds AI benefits are indirect through silicon carbide power management and high-voltage integrated circuits while offering visible capacity ramp-up potential
** Stock down 6.4%, reducing YTD gains to 119% 
** Of 8 analysts covering X-Fab, ​one rates the stock "buy,"​​ six  "hold" and one "sell" - LSEG data 

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