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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