Siltronic Stock: New Goals by 2028 and Return to MDAX

Last Updated: 18. Dezember 2023By

Although the Siltronic share has been more or less sideways in the last few months and has only slightly increased, the paper has now returned to the MDAX after a short absence. The producer of wafers for the semiconductor industry has had to contend with weaker demand in this year.

However, the coming years should be characterized by growth, as the recently announced mid-term goals to 2028 show. The assessments of the analysts are meanwhile very heterogeneous. The target prices vary greatly – recently, however, an upgrade has also provided momentum.

Siltronic: The year 2023 remains patchy – medium-term it looks better In 2023, Siltronic is affected by a market weakness in the semiconductor industry. In the third quarter, sales were around 349 million euros, 26 percent below the previous year period. The EBITDA was also around 42 percent lower than the 2022 level at 99 million euros – the EBITDA margin was 28.4 percent in Q3.

For the full year, Siltronic expects sales to remain between 15 and 17 percent below 2022, and the EBITDA margin to land between 28 and 30 percent. With regard to the new mid-term goals, however, the company is optimistic: By 2028, sales are expected to rise to around 2.2 billion euros (around 40 percent plus from 2023) and the EBITDA margin is seen in the high 30s.

Siltronic share has potential, but there are also critical voices As one of the largest wafer producers in the world, Siltronic has a good starting point in a growth market – the company sees megatrends such as artificial intelligence, digitalization and electromobility as guarantors of growth in the coming years. In addition, Siltronic has weathered the weak demand of recent months well.

Among the analysts, Berenberg Bank also saw a turning point – and both upgraded the Siltronic share and raised the target price from 76 to 107 euros. Jefferies also confirmed the target price of 105 euros at the beginning of December. Much more pessimistic is the analysis by Hauck & Aufhäuser: Here the target price of 52 euros was confirmed. And this is almost 40 percent below the current price level.

Overall, the MDAX returnee remains an interesting paper. Although the growth targets for the coming years are not exorbitant, they are at least solid. With a strong margin in the back, the wafer manufacturer should also continue to benefit from the booming chip industry.