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Aixtron stock outlook cautious, but Citi sees bottoming of estimate cuts

EditorEmilio Ghigini
Published 2024/11/01, 10:06
AIXGn
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On Friday, Citi revised the price target for Aixtron SE (AIXA:GR) (OTC: AIXXF), a provider of deposition equipment to the semiconductor industry, to €23.00 from the previous €26.00. Despite the reduction, the firm continues to recommend a Buy rating on the stock.

The adjustment comes after Aixtron's second half of 2024 performance, which aligned with expectations except for weaker-than-anticipated orders and resulting uncertainty about the company's prospects for 2025. Gardiner notes that Aixtron's outlook for a slight dip in sales for 2025 has led to a more conservative view of next year's equipment revenue, which is currently estimated to be about 40% booked and projected to reach two-thirds by the end of the year.

Gardiner suggests that the revised estimates represent a realistic adjustment, potentially marking a low point in negative forecast revisions. While acknowledging the short-term challenges faced by Aixtron, including weak sentiment pending a substantial improvement in power semiconductor tool orders, the analyst expresses confidence in the long-term growth potential of compound semiconductors and Aixtron's significant role in this market.

The new target price of €23 is a consequence of lowered revenue expectations, yet Citi maintains its positive stance on Aixtron, emphasizing the company's strategic position in the evolving semiconductor industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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