X-Fab Silicon initiated with a Market Perform at Bernstein

Core Viewpoint - Bernstein has initiated coverage of X-Fab Silicon (XFABF) with a Market Perform rating and a price target of EUR 5.50, highlighting its attractive profile as a sole-source supplier in legacy-node foundry services, but also noting significant concerns regarding high capital expenditure and cyclical volatility [1] Group 1 - X-Fab is recognized as a predominantly sole-source supplier to its client base in legacy-node foundry services [1] - The company faces high capital expenditure requirements which may deter investment interest [1] - There is uncertainty regarding the pay-back on large-scale investments, contributing to a cautious outlook [1] Group 2 - X-Fab has significant exposure to cyclical volatility, which poses a risk to its financial stability [1]