Soitec Shares Continue Their Rally: Up +4% Today
The Isère-based semiconductor substrate specialist is regaining strength in early afternoon trading, within a Parisian index that is otherwise trending downwards. Two brokerage houses updated their opinions this Tuesday, with diverging conclusions. The stock remains one of the most spectacular risers on the Paris stock exchange since the beginning of spring.
Soitec Among the Strongest Gainers in the SBF 120
Soitec shares are up 4.28% at €159.60 in early afternoon trading, while the SBF 120 is down 0.38%. The stock is among the strongest gainers in the broad index. This movement extends the rebound that started yesterday after a significant drop on Monday, in a context of high volatility since the annual accounts were published on May 28. Over a month, the stock has gained 24.38% and over three months, the performance is still more than 266%, after quadrupling in price over the period. The price is very slightly below the 20-day moving average (€159.41), while the 200-day moving average remains far below, at €54.28, indicating the rally. The RSI at 52 indicates a neutral configuration, after last week's profit-taking sequence. According to reviewed statements, net short positions represent 1.93% of the capital, distributed between two funds. The bearish bet has significantly reduced in a month (4.55% thirty days ago), indicating a gradual unwinding of short positions without completely disappearing.
Divergent Targets from Analysts and Stretched Valuation After the Stock Rally
Two analyst recommendations were published on June 2. JP Morgan lowered its target from €150 to €130, with a neutral rating, which represents a potential downside of about 18% from the current price. CIC Market Solutions set a target at €150, also neutral, which is about 5% below the current level. Both houses therefore remain behind the quoted price. Regarding valuation, the stock is trading at about 94 times the earnings for the current fiscal year according to the consensus of surveyed analysts, a multiple that reflects high expectations for an acceleration of results. At the annual publication on May 27, the group highlighted market share gains in AI and the adoption of Photonics-SOI solutions for data centers, while pointing out profitability pressure due to reduced production. The resistance threshold at €192.20 remains the next technical barrier identified on the upside.
