Stifel, a financial services firm, has downgraded Jenoptik AG (JEN: GR) to a Hold rating from a previous Buy rating, adjusting the price target downward to €26.00 from the former €34.00.
The adjustment comes in response to a warning from ASML (AS:ASML) about expectations for the year 2025, which prompted a reassessment of Jenoptik's business outlook.
Stifel's analysis anticipates a further weakening in the semiconductor space, which has influenced their decision to lower Jenoptik's rating and price target.
The firm has decided to maintain its estimates for Jenoptik for the year 2024 but has revised the 2025 projections. The top line is expected to decrease by approximately 4%, and earnings per share (EPS) estimates are reduced by 14%.
Stifel's assessment reflects concerns over the nearing end of a positive earnings cycle for significant clients in the semiconductor capital equipment (semicaps) sector.
The outlook has led to the revised rating, suggesting a more cautious stance on the stock's potential performance. The firm's analysis indicates that the current market dynamics in the semiconductor industry could pose challenges for Jenoptik in the near future.
The downgrade and the reduced price target for Jenoptik AG by Stifel highlight the potential impact of market conditions on the company's financial health.
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