While maintaining its 'outperform' opinion on Soitec, Oddo BHF has lowered its target price from 158 to 142 euros, in the wake of EPS forecasts lowered by 15% (average for the next two years) following the issue of a profit warning.

While Soitec has confirmed that it will achieve its guidance for fiscal 2024 (year-end March), the analyst points out that "the bad news is that sales are expected to remain stable for the next fiscal 2025, a level well below expectations".

Compared with the profit warning issued a year ago, however, Oddo BHF notes 'a notable difference with the improvement in the smartphone market, which gives us greater confidence that sales will return to organic growth from the second half'.

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