Soitec SA : Photonics Will Shine

Soitec (SLOIF) is rated BUY, with a DCF-derived target price of $86, implying over 40% upside potential. Mobile and industrial segments are bottoming as inventory corrections progress, while Photonics/data center growth is accelerating and could drive future upside. Ongoing cost-cutting and a CEO transition to Laurent Remont position SLOIF for a more disciplined, growth-oriented strategy with reduced financial risk.