Jefferies Downgrades Soitec; Flags 33.9x EV/EBITDA vs. Peers’ 18.3x
COHR•Soitec SA’s stock plunged over 13% after Jefferies cut its rating to underperform and set a €85 target 39% below the prior close. Jefferies noted Soitec trades at 33.9x FY27 EV/EBITDA versus a peer average of 18.3x—Coherent sits at 32.7x—highlighting valuation risks for optical peers including Coherent.
1. Soitec Downgrade and Stock Reaction
Jefferies cut Soitec’s rating to underperform and set a €85 price target, driving a 13% share drop. The new target sits 39% below the prior close, reflecting concerns that the stock has outpaced its underlying fundamentals.
2. Valuation Comparison with Peers
Soitec trades at 33.9x FY27 EV/EBITDA, an 85% premium to the peer average of 18.3x. Coherent’s multiple stands at 32.7x, underscoring stretched valuations across optical and substrate suppliers that could pressure similar names.
3. Revenue Forecasts and Implications
Jefferies projects fiscal 2027 revenue of €630.3 million (up 6.5%) and fiscal 2028 revenue of €734.4 million (up 16.5%), both below consensus. Slower handset demand and limited CPO adoption underpin the cautious outlook, potentially weighing on Coherent’s growth prospects.
