Setback for Siltronic shareholders: UBS downgrades and lowers price target

In the latest analyst report from UBS, Siltronic, a leading wafer manufacturer, has seen a downgrade in its growth prospects. The Swiss bank has revised the price target from previously 78 euros to now 74 euros and maintains its sell recommendation. Harry Blaiklock, the finance expert behind the study, justifies the adjustment with a more current assessment taking into account the recently presented business outlook from Siltronic. The analyst particularly identifies risks concerning the company's targeted revenue goal. Another aspect leading to a skeptical view is the forecast for the operating result (Ebit) for the year 2024, which is likely to be negative due to upcoming investments. Given these investments and a conservative dividend policy - which according to Blaiklock is significantly below market expectations - there could be subdued investor interest. The re-evaluation by UBS reflects the challenges Siltronic faces in achieving profitable growth in a highly competitive market while meeting investor expectations. The current sell-rating from UBS is a sign that the bank expects Siltronic to face headwinds in the short term.