Soitec tracks best day in almost 6 years after confirming guidance
** Shares in Soitec SOIT.PA rise 18% and head for their best day since April 19, 2018 after the French semiconductor materials supplier reiterated its 2025 outlook against market headwinds
** The group forecasts a stable revenue growth and an EBITDA margin of 35% for the fiscal year ending on March 31
** Stifel says outlook confirmation is positive in light of the recent stock deterioration and also points to the group's AI sector performance as the "bright spot" compensating for weak auto
** "We believe that Soitec has done much needed work on its clients' inventories", Stifel adds, also pointing to the slashed capex guidance and positive H1 cash flow
** Soitec's 15% drop YoY in sales for H1 was in line with guidance, Jefferies says
** "With the stock down 40% in the last three months, the market will likely be relieved by reiterated guidance, however, we believe a sustainable rally is unlikely before we see tangible evidence of the H2 recovery", UBS says
($1 = 0.9492 euros)
Reporting by Mathias de Rozario
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