Long-term visibility lifts X-Fab Silicon Foundries

X-Fab Silicon Foundries Europese Vennootschap

29/04/2022 09:28

** X-Fab Silicon Foundries shares  XFAB.PA  jump 9% after
the chipmaker upgraded its long-term guidance
    ** The Belgian company now expects to reach $1 billion in
annual revenues in 2024 vs in 2026 as originally planned, with
an EBITDA margin raised to more than 30% (vs more than 27%
previously) urn:newsml:reuters.com:*:nASM0009BG 
    ** Berenberg says the picture has significantly improved
longer term and X-Fab's increased confidence is driven by its
move to secure long-term commitments from its largest customers
    ** It believes revenue and profitability performances for
the next three years are largely de-risked thanks to its
contract pipeline and secure customer commitments
    ** "Despite this bullish outlook, the valuation remains very
cheap," the broker adds and reiterates its "buy" rating
    ** Deutsche Bank points to strong demand, adding that a
large portion of it from automotive, industrial and medical
markets is now secured by long-term agreements, allowing X-Fab
to off-load under-loading risk to the customer
    ** It upgrades the stock to "buy" from "hold"

 (Reporting by Elena Vardon)
 ((elena.vardon@tr.com))