Deutsche Bank reiterated its Buy on IQE (AIM:IQE), assigning a 60p target as analyst John Karidis says the compound‑semiconductor specialist has moved from a weak balance sheet and largely static end‑markets to a notably stronger footing.
At the same time, an injection of funding meant new and existing shareholders retain exposure to the London-listed firm's upside potential.
It comes after IQE in May secured a Tier‑1 partner, and roughly 10% strategic shareholder, in MACOM whilst retaining manufacturing footprint across the UK, US and Taiwan.
Moreover, IQE owns "hard‑to‑build" intellectual propertt across multiple compound‑semiconductor platforms, DB's Karidis added.
The analyst noted that Deutsche Bank's forecasts are effectively unchanged after FY25 results, but said the MACOM strategic tie‑up and the fresh disclosures last week represent material upside risk to those estimates.
"Look to now and ahead, not back," Karidis said in the note.
