Soitec Shares Bounce 7% Following JP Morgan Upgrade
Soitec's stock soared this Wednesday at midday, showing a 7.1% increase to 54.30 euros, amid a general rebound in the Parisian market. This significant rise comes after a challenging week for the semiconductor materials specialist, with its share price having dropped more than 11% over the past seven days. The CAC 40 concurrently rose by 1.38% during the session, reaching 7,851 points.
Technical Rebound for Soitec
Soitec's rebound is part of a technical recovery following the significant correction experienced in recent sessions. The stock had lost 11.53% over a week, erasing some of the gains accumulated over three months, during which the stock still showcased an impressive performance of 136.6%. Over one year, the balance remains slightly negative at -3.72%. From a graphical analysis perspective, the share price is now well above its 50-day moving average, located at 38.59 euros, indicating the maintenance of a medium-term bullish momentum despite the recent consolidation. The RSI, at 57, is in a neutral zone, suggesting that the stock still has margins before reaching overbought levels. The nearest resistance is at 63.16 euros, a threshold whose crossing would constitute a significant technical signal. Wednesday's rebound coincides with a positive session across the entire European technology sector. ASML Holding is up 1.03% during the session, while Prosus gains 3.73%, illustrating a return of appetite for growth stocks in Paris and neighboring markets.
Surge Following JP Morgan's Major Revision
This surge follows a major revision by JP Morgan, which on March 23 raised its price target on Soitec from 33 to 50 euros, while maintaining a neutral recommendation. This more than 50% increase in the target reflects a significant reassessment of the group's prospects, although the American bank does not adopt a buying bias. At the current price of 54.30 euros, the stock is trading above this new target, implying a potential decline of about 7.9% according to this estimate. In terms of schedule, Soitec's next annual results are expected on May 27, 2026, a deadline that could provide new elements of assessment on the commercial trajectory and margins of the manufacturer of silicon-on-insulator substrates. The monthly volatility of the stock remains high, at 22.54, reflecting the amplitude of price variations observed in recent weeks on this SBF 120 stock, which is up 1.38% in session.
