X-Fab rises after new 'more realistic' 2026 and 2030 targets

X-Fab Silicon Foundries Europese Vennootschap

04/12/2024 08:42

** Shares in X-Fab  XFAB.PA  rise 6% after the Paris-listed
foundry group announced new targets for 2026 and 2030 ahead of
its capital markets day
    ** It sees 2026 sales of $1.05 billion with a 30% EBITDA
margin, and 2030 sales of $1.5 billion with a 35% EBITDA margin
    ** That compares with its previous target of $1.5 billion
sales and EBITDA margin of 30-35% by 2026
    ** "We see these targets as more realistic," says KBC
    ** It expects the group to reiterate at the CMD intactness
of fundamental business drivers, including growth of
semiconductor content in cars, global electrification and
digitization of medical sector 
        ** Degroof Petercam notes the implied EBITDA for 2026 is
$315 million vs current Visible Alpha consensus expectations of
$298 million
  
        ** Broker says pushing back the 2026 target "makes
sense" in light of the stagnation in the automotive and
industrial end markets
  
    

   

 (Reporting by Dimitri Rhodes)
 ((Dimitri.rhodes@thomsonreuters.com))