Aixtron stock: Weak start, but long-term potential

Last Updated: 16. Januar 2024By

The Aixtron share disappointed with a weak start to the new stock market year after a strong rally at the end of the previous year, and has been trading around 15 percent lower since the beginning of January (as of January 16, 2024, around 11 am). However, on an annual basis, the stock is still significantly up and price fluctuations have recently been part of Aixtron’s performance.

In the long term, the prospects for the semiconductor machine builder remain good: Aixtron builds machines and systems for innovative chips made of silicon carbide and gallium nitride – demand is expected to increase significantly in the coming years. However, at the beginning of 2024, analysts are far from unanimous, with estimates for the Aixtron share ranging from warning to euphoria.

How much can Aixtron grow? After the first three quarters of 2023, Aixtron achieved sales of 416 million euros with an EBIT margin of 22 percent. For the full year, the MDAX company plans to achieve sales of between 600 and 660 million euros and a margin of between 25 and 27 percent. Incoming orders are expected to be between 620 and 700 million euros (after 9 months it was 436 million euros).

The numbers show that Aixtron needs to have a very good fourth quarter in order to meet its set goals – it could be close for incoming orders, which could lead to disappointment. The Q4 figures will be presented at the latest by the end of February, and investors should keep an eye on them. If Aixtron fails to meet its targets, this could put short-term pressure on the already volatile stock.

Aixtron share: Analysts have different opinions The Swiss UBS has also taken a similar stance, confirming its „sell“ rating and target price of 26.90 euros last week. UBS currently sees little potential and 2024 as a transitional year. Jefferies, on the other hand, has taken the opposite approach. Here, significant growth potential is seen for the entire industry and particularly for Aixtron – as a result, Jefferies has even raised the target price for the Aixtron share from 52 to 55 euros.

In the short term, both scenarios are possible for the German machine builder: If the company misses its targets for 2023, the stock could come under further pressure. However, the outlook for 2024 will also play a decisive role. In the medium and long term, the potential for the well-positioned MDAX corporation remains high. Demand for the special chips will continue to grow, and the topic of AI is also expected to be a driving force.