Soitec stock rebounds and posts nearly 345% gain over one year
Soitec confirms its inability to break through the 146.35 € resistance level and extends its post-correction rebound in a Paris market that is also in positive territory. The session is marked by a spectacular reversal of opinion from JP Morgan, which doubles its price target on the Isère-based semiconductor substrate manufacturer.
JP Morgan upgrades to overweight and doubles its 200 € target on Soitec
The Soitec stock gains 1.83% to 142.05 € as the close approaches, in an SBF 120 up 0.58%. The day's catalyst is clear: JP Morgan upgraded its rating on the stock from neutral to overweight on Wednesday, September 16, while simultaneously raising its price target from 98 € to 200 €. At 142.05 €, the implicit upside potential relative to this new target exceeds 40%. This change of opinion stands in contrast to the stock's recent turbulence, which had fallen more than 14% on Monday before rebounding sharply the following session.
Over one year, Soitec now posts a performance of nearly 345%, driven by accelerating demand in Photonics-SOI. In early September, the increase in its revenue growth forecast for Q2 to approximately 50% had triggered a spectacular surge, in turn fueling cascading revisions among analyst firms. The valuation remains elevated however: according to the consensus of analysts tracked, the stock trades at approximately 43.4 times expected earnings for the following fiscal year, a level that reflects very optimistic expectations on the ramp-up of Photonics-SOI.
Soitec above its three moving averages, the 146.35 € resistance remains to be broken
From a technical standpoint, Soitec is trading well above its three moving averages: the 20-day MA at 121.77 €, the 50-day MA at 114.16 € and the 200-day MA at 84.87 € are all significantly below the current price, with gaps of 16.65%, 24.43% and 67.37% respectively. This configuration confirms an intact underlying bullish dynamic since the early September rally. The RSI at 60 is in neutral territory, with no overbought signal despite the recent advance.
The stock is running up against its resistance at 146.35 €, a level that has been tested multiple times in recent weeks without being broken. As long as this ceiling is not broken on a closing basis, the stock's pullback from its session highs remains consistent with profit-taking observed since early September. The 146.35 € resistance therefore constitutes the next level to watch to confirm the continuation of the move.
