IQE's (AIM:IQE) balance sheet is the strongest it has been for years, that's according to Panmure Liberum, which has upped its price target 50p from 40p (current price 48.65p).
Analyst Harvey Robinson noted the company's balance‑sheet reset and that FY25 results and FY26 guidance were in line with expectations.
MACOM’s role as a long‑term lead customer, combined with fresh funding, positions the company to benefit from AI, space and defence end‑markets, Robinson said. As such, the broker reckons sustained positive margins and cash generation are now materially more likely.
The Panmure Liberum analyst described the MACOM‑led c.£81m financing as de‑risking the funding position, and said the target increase reflects greater confidence in the mid‑to‑long‑term outlook.
The broker note flagged future catalysts and milestones including the delivery of FY26 top‑line growth (with order visibility into H2), completion of the financing (shareholder approval and foreign‑investment clearances) and signs of further long‑term agreements.
Although the target price is upgraded, Panmure Liberum retained a Hold rating for the London-listed share.
