On Wednesday, Deutsche Bank (ETR:DBKGn) adjusted its stance on Aixtron SE (AIXA:GR) (OTC: AIXXF), downgrading the stock from a Buy to a Hold rating. The firm also significantly reduced the price target to €18.00 from the previous €30.00. This decision follows a noticeable decline in Aixtron's shares since December 2023, which has been attributed to a deteriorating outlook for the power semiconductor business, particularly concerning silicon carbide (SiC) materials.
The bank's analysis suggests that Aixtron's performance expectations for 2024 are modest, with the company's guidance indicating a mere 1.6% year-over-year growth in sales, reaching a midpoint between €620-640 million. This forecast aligns with the broader anticipation that 2024 will be a year of minimal growth for Aixtron.
The revised outlook from Deutsche Bank comes after considering the negative news flow within the sector, leading to the conclusion that the previously expected growth in 2025 might not materialize. The analyst pointed to Aixtron's fiscal year 2024 sales guidance, which accounts for short-term orders and tool deliveries in the second half of the year, estimated to be between €20-40 million.
However, due to softening end markets, including a declining demand for electric vehicles affecting original equipment manufacturers (OEMs) and suppliers, these figures are likely to be at the lower end of the spectrum.
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