Soitec Shares Drop 3.48% Despite Morgan Stanley Doubling Price Target

Morgan Stanley's Revised Stance

The day before, Morgan Stanley significantly revised its position on Soitec. The American bank shifted from a 'market-weight' recommendation to 'overweight', while raising its price target from 35 to 70 euros. This target implies a potential upside of about 35.7% from the current price of 51.60 euros. Despite this positive signal, the stock could not withstand the selling pressure affecting the entire Paris stock exchange this Friday. The CAC 40 is indeed down 1.11% during the session, while the SBF 120 loses 1.12%. The European technology sector is also suffering, as evidenced by the 2.80% decline of ASML Holding in the same session. Soitec's annual results for 2026 are expected on May 27th, a deadline that could be a crucial catalyst to confirm or refute the trajectory anticipated by the investment bank.

Technical Analysis

Technically, the stock is still trading well above its 50-day and 200-day moving averages, located at 39.62 and 37.25 euros respectively, indicating a favorable underlying trend built over several weeks. However, the current price is approaching the 20-day moving average (50.47 euros), a zone that now acts as a short-term support. A sustained move below this threshold could indicate a more marked consolidation phase. The RSI, an indicator measuring the relative strength of the upward movement, stands at 59, in a neutral zone, after probably having been in overbought territory during the recent surge. This configuration suggests that the stock has already released some of the buying pressure accumulated in recent weeks. Over seven days, Soitec has seen a decline of 4.76%, bringing the annual performance to -5.75%. The monthly volatility, high at 22.60, reflects the extent of fluctuations observed on the stock in recent weeks.