Soitec stock surges over 12% and dominates the SBF 120
Soitec surges on Wednesday in a nearly stable Paris market, bringing its rebound to over 12% in the session following the sharp correction suffered on Monday. The day is being closely watched on two fronts: the Federal Reserve is set to raise its rates for the first time in three years, which does not prevent the Isère-based semiconductor substrate manufacturer from widely dominating the SBF 120.
JP Morgan raises its rating to overweight and doubles its price target to €200
The catalyst of the day comes from JP Morgan, which publishes on Wednesday, September 16 a radical revision of its rating on the stock: the American bank moves from "neutral" to "overweight" and simultaneously raises its price target from €98 to €200, more than double. Compared with the current price of €138, this target represents an upside potential of nearly 45%. The revision comes in the wake of a turbulent sequence for Soitec: the stock had plunged more than 14% on Monday, lagging the SBF 120, before recovering nearly 3% on Tuesday.
This 12.2% rebound in the session puts Soitec at the top of the SBF 120 index, well ahead of its followers. The underlying momentum remains driven by accelerating demand in Photonics-SOI: in early September, the company had raised its revenue growth forecast for the second quarter to approximately 50%, which triggered a spectacular rally before Monday's correction.
Moving averages widely exceeded in a context of tight valuation
On the technical indicators front, the stock is trading at €138, more than 14% above its 20-day moving average (€120.48) and more than 21% above its 50-day MA (€113.33). This outperformance reflects the strength of the move that began in early September, even after recent corrections. The RSI at 51 remains neutral, leaving room before any overbought configuration.
Resistance at €146.35 constitutes the next level to overcome, approximately 6% from the current price. Valuation, meanwhile, remains elevated: according to the consensus of analysts tracked, the stock trades at approximately 42 times the expected earnings for the next fiscal year, a multiple that reflects anticipations of strong growth linked to Photonics-SOI. In a market attentive to the Fed's decision on Wednesday, the CAC 40 gains 0.14% and the SBF 120 advances 0.16% in the session, a globally neutral context that does not diminish the extent of Soitec's rebound.
