KBC ups X-FAB to 'hold' on Erfurt funding, broader growth drivers
BUZZ-KBC ups X-FAB to 'hold' on Erfurt funding, broader growth drivers ** KBC Securities upgrades X-FAB Silicon Foundries XFAB.PA to "hold" from "reduce" and sets a new target price of €8.8
** The new rating comes after X-FAB has secured €127.4 million ($144.66 million) in public funding for its "Fab4Micro" project to expand its Erfurt site in Germany, the broker says in a note
** "The funding marks a major strategic milestone for X-FAB," KBC says, adding that the deal shows the group's growth drivers are "increasingly diversifying beyond automotive"
** In its view, the expansion will significantly boost X-FAB’s capacity in MEMS—chip-based components used in sensors—as well as in highly integrated microsystems and photonics, which use light to transmit or process data
** Broker also adds that photonics remains a longer-term opportunity, with material revenues expected only from 2027 onward
($1 = 0.8807 euros)
(Reporting by Nathan Vifflin in Gdansk)
((nathan.vifflin@thomsonreuters.com; +48 58 769 67 13;))
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