Stifel has reaffirmed its 'buy' recommendation on Mersen, with a price target raised from €42 to €50, following a fourth-quarter trading update in which the group indicated that it 'continues to record strong order intake since the start of the year'.

Despite the recessionary economic environment, Mersen continues to be driven by the energy transition and growth in the semiconductor market (particularly silicon carbide)", emphasizes the broker.

"This still solid momentum should enable it to maintain stable earnings this year, despite the anticipated price/cost squeeze on margins", continues Stifel, which raises its EPS guidance for 2023.

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