
STMicroelectronics: leading the CAC as Jefferies says buy
(CercleFinance.com) - STMicroelectronics was by far the biggest riser on the CAC 40 index on Wednesday's Paris Bourse, following an upgrade by analysts at Jefferies.
Shortly before 2pm, the chipmaker's shares were up about 8%, while the CAC was down 0.8%.
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STM was also the second-biggest winner on the STOXX Europe 600 index, just behind Nexans (+8%).
In a note entitled, The darkest hour before the dawn, Jefferies upgraded its the stock from "hold" to "buy", with a target price raised from E23 to E24.
In its study, the US broker explains that it expects the group's growth to accelerate in H2 2025, driven by: (1) a normalization of inventories, (2) increased use of metasurface components in the iPhone 17, and (3) a recovery in demand from industry.
The broker sees other structural drivers, such as on-board artificial intelligence (AI), low earth orbit (LEO) satellites, silicon photonics and microcontrollers for the automotive industry.
We expect the share price to rise on the back of an accelerating industrial and automotive chip cycle, it concludes.
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.
Shortly before 2pm, the chipmaker's shares were up about 8%, while the CAC was down 0.8%.
:
STM was also the second-biggest winner on the STOXX Europe 600 index, just behind Nexans (+8%).
In a note entitled, The darkest hour before the dawn, Jefferies upgraded its the stock from "hold" to "buy", with a target price raised from E23 to E24.
In its study, the US broker explains that it expects the group's growth to accelerate in H2 2025, driven by: (1) a normalization of inventories, (2) increased use of metasurface components in the iPhone 17, and (3) a recovery in demand from industry.
The broker sees other structural drivers, such as on-board artificial intelligence (AI), low earth orbit (LEO) satellites, silicon photonics and microcontrollers for the automotive industry.
We expect the share price to rise on the back of an accelerating industrial and automotive chip cycle, it concludes.
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.