STMicro: Oddo BHF downgrades stock
(CercleFinance.com) - Oddo BHF has downgraded STMicroelectronics shares from 'Outperform' to 'Neutral' with target price reduced from E36 to E28, adopting a much more cautious scenario for 2025, with significant revisions that take it well below the consensus.
The broker has thus revised its forecasts for 2025 by 48%, which is significantly more than initially anticipated, fearing that the consensus has not adopted a sufficiently cautious scenario for H2 2025.
The crisis is deeper and longer than expected, and STMicro is adapting by cutting costs, but it will take time, and CMD will not be able to change sentiment in the short term, the analyst warns.
Relatively speaking, we think there are better things to do in the sector at the moment, he continues, expressing preference for Infineon in the same market segment, which is of course in the same environment, but has a better mix and should therefore hold up better in 2025.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
The broker has thus revised its forecasts for 2025 by 48%, which is significantly more than initially anticipated, fearing that the consensus has not adopted a sufficiently cautious scenario for H2 2025.
The crisis is deeper and longer than expected, and STMicro is adapting by cutting costs, but it will take time, and CMD will not be able to change sentiment in the short term, the analyst warns.
Relatively speaking, we think there are better things to do in the sector at the moment, he continues, expressing preference for Infineon in the same market segment, which is of course in the same environment, but has a better mix and should therefore hold up better in 2025.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.