On Monday, Aixtron SE (AIXA:GR) (OTC: AIXXF) stock received an updated rating from Exane BNP Paribas (OTC:BNPQY), moving from Underperform to Neutral. The firm also set a new price target for the company at EUR20.00. This adjustment comes after a thorough review of Aixtron's second-quarter financial results and future earnings projections.
The firm revised its earnings per share (EPS) estimates for Aixtron, with a reduction of 15% for 2024 and 17% for 2025. Despite the decrease in the target price, the upgrade to a Neutral stance reflects a realignment with the current share price.
The analyst expressed caution regarding the company's ability to meet its 2024 EBIT margin guidance, anticipating potential risks including further delays and possible market share losses during the transition to 200mm technology.
The report highlighted that Aixtron could be on track for growth in 2025, bolstered by the second-quarter and expected second-half orders for silicon carbide (SiC), as several SiC manufacturers are expanding their production capacities. This potential growth trajectory is seen as a positive factor in the context of the company's valuation.
Aixtron's shares are currently trading at what is considered a five-year low in terms of valuation, having declined 49% year-to-date. The new price target implies an 11.5 times enterprise value to EBIT (EV/EBIT) multiple for the year 2025, which represents a 30% discount compared to the five-year average, suggesting a supportive valuation level for the stock.
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