Soitec's Margin to Expand Significantly in Coming Years -- Market Talk

Dow Jones2026/10/09 09:49

0949 GMT - Soitec's gross margin should expand significantly over the coming years due to a contribution from photonics, Bank of America analysts write in a note to clients. The French semiconductor-materials maker generates revenue from Photonics-SOI--a platform to integrate photonic components on a silicon-on-insulator substrate that are widely used in data centers. Soitec reported a gross margin of 16.3% for the fiscal year that closed at the end of March. Analysts say that should grow to 29% in fiscal 2027, 39% in fiscal 2028 and 44% in fiscal 2029. "We think consensus underappreciates the margin accretion effect of the increasing mix of Photonics-SOI," they say as they upgrade their rating on the stock to buy from neutral. Soitec shares trade 6.3% higher at 162.00 euros. (mauro.orru@wsj.com) (END) Dow Jones Newswires October 09, 2026 05:49 ET (09:49 GMT)

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