Bernstein has begun coverage of X-Fab Silicon with a Market Perform rating and a price target of EUR 5.50.
The firm stated that X-Fab presents an attractive profile as a predominantly sole-source supplier in legacy-node foundry services to its client base.
However, Bernstein noted high capital expenditure requirements, uncertain pay-back on large-scale investments, and significant exposure to cyclical volatility as deterrents to a more constructive stance at this time.