STMicro: Oddo BHF lowers target price
(CercleFinance.com) - While maintaining its 'neutral' rating on STMicroelectronics shares, in view of the lack of visibility, Oddo BHF has lowered its target price from E28 to E23, following results that were marked by guidance well below expectations for the current quarter.
The absence of guidance for 2025 underscores the poor visibility of the recovery, following the end of inventory corrections still underway in the automotive and industrial sectors in H1, the analyst says, who reduces his forecasts by 33% for 2025, followed by 12% for 2026.
With these revisions and yesterday's drop in the share price, STMicroelectronics is trading at 8x forward-looking 12m EBITDA, close to its historical average of 9x, which does not seem attractive to us in the current context, he adds.
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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 absence of guidance for 2025 underscores the poor visibility of the recovery, following the end of inventory corrections still underway in the automotive and industrial sectors in H1, the analyst says, who reduces his forecasts by 33% for 2025, followed by 12% for 2026.
With these revisions and yesterday's drop in the share price, STMicroelectronics is trading at 8x forward-looking 12m EBITDA, close to its historical average of 9x, which does not seem attractive to us in the current context, he adds.
Copyright (c) 2025 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.