STMicro: Stifel still a buyer, but trims TP

(CercleFinance.com) - Stifel reiterates its 'buy' rating on STMicroelectronics while lowering its target price from E50 to E46, reducing its EPS estimates by 31% for 2024 and 14% for 2025 after updating its model for the group.


The broker explains that it wants to reflect weaker than previously expected dynamics for STMicroelectronics over the remainder of the year, particularly in industrial applications, but also in automotive.

Stifel points out, however, that trading at a 2025 P/E of around 12x after this revision, the stock's valuation is attractive and below the average of its peers. It therefore is still a buyer, seeing the long-term growth case unchanged.


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