STMicro: down sharply, Oddo BHF lowers its target price

(CercleFinance.com) - STMicro's share price was down nearly -3% at the end of the day, as Oddo BHF lowered its target price for the company.


Oddo BHF reaffirms its 'outperform' opinion on STMicroelectronics, with a target price reduced from €40 to €36, in the wake of lowered EPS estimates for 2024-26 of around 7% for the Franco-Italian semiconductor manufacturer.

The research department expects the third quarter of 2024 to be very close to expectations, but anticipates a more limited sequential rebound than expected in the fourth quarter, and therefore considers the lower end of the 2024 guidance to be "a credible scenario".

A further adjustment to the lower end of the 2024 guidance is likely due to the lack of recovery in the industrial and automotive sectors", warns the analyst, pointing out however "a massive underperformance which largely reflects this type of risk".

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