IQE Plc, the London-listed compound‑semiconductor wafer group, is well placed to monetise strong demand according to a 'Buy' note from Deutsche Bank.
With a bullish recommendation and a 60p price target, the German bank sees meaningful upside to the current market price of around 51p.
John Karidis argues demand is very strong across IQE's end markets: ie data centres, AI cloud infrastructure, military and defence and satellite communications.
IQE's strategic review - which led to an agreed fundraising, industry partnership and, crucially, came to the conclusion that the company should not be put up for sale - had "greatly strengthened its scope to monetise big opportunities", the bank said in the note.
DB highlighted that the £81m funding package of equity and convertible debt was pivotal, saying the proceeds are needed to clear the group's debt stack and to fund accelerated Indium Phosphide and Gallium Nitride capacity investments.
Karidis said he expects the funding to complete by the end of June, and highlighted that delivery of the package among the next catalysts in converting demand into FY26 revenue growth.
