Soitec: Bryan Garnier ups target price after results
(CercleFinance.com) - Bryan Garnier has reinstated its “buy” rating on the Soitec stock, raising its fair value from 75 euros to 84 euros, the day after the group published FY 2018 results that overall were in line with the broker's expectations.
For FY 2019, the broker adopts an aggressive stance regarding revenues, judging that unexpected additional installed capacity at Bernin 1 and the launch of Bernin 2 will boost growth to well above the 35% at constant exchange rates.
Although the launch of Bernin 2 and Singapore were to restrict margins and free cash flow in the near term, they should position the group for strong growth in 2020, with margins improving towards Soitec's long-term target, it continued.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
For FY 2019, the broker adopts an aggressive stance regarding revenues, judging that unexpected additional installed capacity at Bernin 1 and the launch of Bernin 2 will boost growth to well above the 35% at constant exchange rates.
Although the launch of Bernin 2 and Singapore were to restrict margins and free cash flow in the near term, they should position the group for strong growth in 2020, with margins improving towards Soitec's long-term target, it continued.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.