Morgan Stanley has recently upgraded its outlook on Soitec, a French producer known for its innovative semiconductor materials. The investment bank highlighted that while the mobile market continues to face challenges, there is growing optimism surrounding Photonics SOI, which is positively influencing the medium-term outlook for the company.
With the increasing adoption of silicon photonics, Morgan Stanley anticipates that Soitec will gain greater exposure to higher growth and margin opportunities. The investment bank argues that these prospects are currently undervalued in the company’s share price, suggesting a potential for significant appreciation in the market.