STMicro: Goldman Sachs upgrades to 'buy'
(CercleFinance.com) - According to analysts at Goldman Sachs, the slip that the STMicro share recently suffered offers investors "an entry point" for a second half that looks as though it will better for the semiconductor manufacturer.
Analysts have upgraded their previous neutral rating on the share to buy. Alongside this upgrade, they have increased their corresponding target price from 17 euros to 17.5 euros, meaning upside potential of around 10%.
Since the second quarter, STMicro shares have underperformed European technology shares by 6%, Goldman Sachs points out. However, analysts believe that the risks they previously identified for the second half have dissipated. "The market does not, in our view, give sufficient credit for STM's restructuring," the broker says. They add that the semiconductor market is now showing signs of picking up.
Shortly after 11 am on Friday, the STMicro share is up almost 3%, while the CAC 40 is down over 0.7%.
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