Stifel reaffirms its 'buy' recommendation on Soitec, with a price target lowered from 180 to 170 euros, in the wake of a further 14.8% reduction in its EPS assumption for the semiconductor materials group's 2023-24 financial year.

"This reduction reflects the most recent data suggesting a further deterioration in smartphone demand and a prolonged period of inventory digestion in the supply chain", explains the broker.

Stifel expects Soitec to update its outlook for 2023-24 over the coming quarters, but believes that such a revision is already expected by investors, given the stock's underperformance since the last publication.

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