Serenity: XFAB Far From its Peak, Bernstein's €12.8 Target Price Still Considered Conservative

BlockBeats News, June 23rd, Serenity reported that Bernstein upgraded XFAB's rating from "Market Perform" to "Outperform", with the target price raised significantly from 5 euros to 12.8 euros. However, Serenity believes that this target price is still only a lagging indicator of the automotive recovery, silicon carbide, and power semiconductor capacity ramp-up, far from fully pricing in XFAB's potential value. If the market starts to price in the possibility of XFAB transitioning to HVM (High Volume Manufacturing), especially its silicon photonics foundry business, there is still a considerable upside to the valuation.

Serenity particularly highlighted several key moves by XFAB in the silicon photonics field: partnering with Nvidia through the PhotonixFab platform and collaborating with LIGENTEC to develop SOI-based TFLN (Thin Film Lithium Niobate) technology. Regardless of whether Bernstein's target price is conservative, Serenity remains bullish on XFAB.