Soitec's Shares Timidly Rebound After a 16% Drop Over a Week
The Isère-based semiconductor substrate specialist is slowly regaining ground at mid-session in a decidedly bullish Parisian market. The rebound follows a significant drop and comes as a new analyst note adds to a stream of mixed revisions. The stock remains in a phase of high volatility after a spring surge.
A Modest Rebound That Does Not Offset the Monthly Drop in the Stock
Soitec's stock is up 1.75% to €130.85 at midday, while the SBF 120 gains 1.72% in the session. The rebound is modest and only mitigates a monthly decline of 19.1% and a weekly fall of 16.4%. The quarterly performance, still peaking at +155%, demonstrates the progress made since the February low, before profit-taking ensued. Technically, the price continues to trade below its 20-day moving average, set at €156.05, a 16% gap that measures the extent of the recent correction. However, it remains above the 50-day moving average at €125.42, a level that borders the support identified at €125.35 and marks the lower zone defended for several sessions.
The RSI at 45 remains neutral and does not indicate any particular exhaustion of the selling movement. Regarding short positions, the reports indicate a cumulative net short position of 1.72% of the capital, carried by two funds. This figure has significantly receded over thirty days (-2.96 points), coming down from a level close to 4.7%. This movement reflects a partial covering of short bets opened during the rally, without necessarily indicating a reversal in sentiment: the selling pressure, although less concentrated, remains present.
Jefferies Raises Its Target to €85 but Downgrades Its Opinion to Underperform
The flow of analyst opinions remains highly mixed on the stock. On June 10, Jefferies issued a paradoxical note: the brokerage firm raised its price target from €45 to €85, while downgrading its opinion from 'hold' to 'underperform'. The revised target still indicates a theoretical downside potential of 35% compared to the current price. This publication is part of a back-and-forth sequence among houses: Morgan Stanley had targeted €200 in mid-May, Oddo had raised its target following the annual accounts, while JP Morgan had lowered its target at the beginning of June.
On a fundamental level, during the announcement of the annual results for 2026 (on May 27, 2026), Soitec reported a revenue decline of 34% to €592 million, affected by inventory corrections among its RF-SOI clients and the persistent weakness of the automotive market. However, the group had returned its cash flow to positive territory at +€63 million. Among the opportunities identified at that time, management highlighted the adoption of Photonics-SOI solutions for data centers and the leverage from demand related to artificial intelligence. The valuation, at 73.2 times the expected earnings for the following fiscal year according to the consensus of analysts surveyed, reflects these high expectations for the restart phase of the cycle.
