Soitec stock declines over 2%, among SBF 120 laggards
After an exceptional rally since early September, Soitec marks a notable pause on Tuesday and loses ground in an SBF 120 also retreating. The consolidation movement occurs as two brokerage firms have just revised their views on the stock in opposite directions, fueling debate over the valuation reached following a surge of over 325% in one year.
Soitec retreats 2% and ranks among the steepest declines in the SBF 120
Soitec loses 2.06% to €140.40 during the session, compared with a close of €143.35 the previous day. The decline ranks the stock among the steepest falls in the SBF 120, in a Paris market itself oriented downward (-0.38% for the broader index). This pullback comes after a spectacular rebound: the stock still shows a gain of 22.19% over the week, stemming from the rally triggered by the upward revision of Q2 revenue growth forecasts, announced in early September.
Over one year, the gain exceeds 325%. The technical configuration remains favorable over the medium term, however: the price stands well above the 20-day moving average (€118.25, a margin of nearly 19%) and the 50-day moving average (€110.98, a margin exceeding 26%), reflecting an intact bullish dynamic despite today's correction. The RSI at 69 approaches the overbought zone without clearly crossing into it, consistent with a stock consolidating after such rapid gains.
Bernstein raises its target to €215, Jefferies stands apart with an underperformance rating
The analyst views on Soitec are split on Tuesday. Bernstein raised its price target from €200 to €215 while maintaining an outperform rating, representing a premium of over 53% relative to the current price. Conversely, Jefferies, whose revision dates to Monday, September 7, raised its target from €85 to €98 while maintaining an underperform rating — implying a downside potential of nearly 30% from current levels.
This divide reflects the debate over valuation: according to the consensus of surveyed analysts, the stock trades around 215 times expected earnings for the current fiscal year, a multiple that embeds a significant growth premium tied to the acceleration of Photonics-SOI. The ECB decision on Thursday, expected by markets as a 25 basis point increase in the deposit rate to 2.5%, could weigh on high-valuation growth stocks like Soitec in the coming sessions.
