Soitec shares among the biggest gainers in the SBF 120 despite a 43.5% drop over one month

An isolated rebound in a session dominated by the AI sell-off

Soitec gains 3.27% to €94.64, placing it second in the SBF 120, while the index falls 1.64% and the CAC 40 drops 1.65%.

The market decline follows Wall Street's correction on Thursday (Nasdaq -5.52%, S&P 500 -4.36%), led by semiconductors and stocks linked to artificial intelligence.

The Nikkei fell 5.96% and the Kospi 6.02% at Friday's close. Soitec's rebound contrasts with this backdrop, but it does not change the overall picture: the stock has lost 28.84% over one week and 43.48% over one month. It also remains below its three moving averages, with the MM20 at €123.28 sitting 23.2% above the share price.

Two opposing analyst opinions published on the same day this week

On November 4, UBS raised its price target from €94 to €130 while upgrading the stock to neutral from sell, whereas Morgan Stanley lowered its target from €200 to €140 while downgrading the stock to equal-weight from overweight.

Analyst opinions thus converge toward a range of €130 to €140, i.e. 37% to 48% above the current price.

The stock still trades at nearly 120 times expected earnings for the current fiscal year and 23 times those of the following year, according to the consensus of the analysts surveyed.

Soitec had announced on July 29 a share buyback program of €358 million. On the technical side, the RSI at 32 reflects the extent of the decline, but the MM200 at €105.96, 12% above the share price, remains the level the stock will need to reclaim.