Investing.com – The German semiconductor tools provider Aixtron SE (ETR:) reported sturdy order consumption for the second quarter. Nevertheless, the corporate has revised its annual forecast downwards, which Jefferies welcomes and stays optimistic concerning the inventory.
Within the second quarter of 2024, Aixtron’s order consumption amounted to €176 million, which was 19% above the consensus estimates of €148 million. The sturdy order consumption was primarily pushed by demand for silicon carbide (SiC) merchandise, which accounted for 58% of the full order consumption. Jefferies analysts Olivia Honychurch and Janardan Menon emphasised that the rise in orders dispels market fears about declining SiC demand and potential lack of market share for Aixtron.
Aixtron lowered its income forecast for the 2024 fiscal 12 months from €630-720 million to €620-660 million, with a continuing gross margin of 43-45%. The EBIT margin was additionally adjusted and now stands at 22-25% in comparison with the earlier 24-26%. Jefferies had anticipated income of €680 million, whereas the consensus was at €661 million. Regardless of these reductions, Jefferies views the adjustment of the forecasts positively and believes it removes important uncertainty for traders.
“We anticipate Aixtron’s discount of the FY24 forecast to behave as a constructive catalyst for the inventory, as this step was extensively anticipated and even hoped for,” the analysts mentioned. They added, “We imagine this helps dispel issues that demand for SiC is at the moment considerably declining and that Aixtron is dropping market share.”
The administration’s feedback additionally point out a continued sturdy order consumption within the coming quarters, positioning Aixtron nicely for progress within the 2025 fiscal 12 months, in response to Jefferies. The consultants additionally level out that the corporate just lately acquired a significant buyer, which is believed by the funding financial institution to be Infineon (OTC:) (ETR: IFXGn), which is predicted to considerably contribute to future order consumption.
Preliminary income within the second quarter of 2024 amounted to €132 million, barely beneath the consensus estimate of €134 million and Jefferies’ forecast of €135 million. EBIT of €13 million was considerably beneath the consensus of €26 million and Jefferies’ expectation of €28.7 million.
The inventory of Aixtron SE, rated “Purchase” by Jefferies, just lately rose by practically 16% to €21.83. Jefferies’ worth goal is €40, representing a possible return of 83%.
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