STMicro: Oddo reiterates rating and target price
(CercleFinance.com) - Oddo points out that since its peak on 15 February, the STMicro share has fallen by around 13%.
Despite fundamentals that remain very dynamic, rumours about potential contract losses with Apple and the publication of its weight in the group's annual report (23.9% in 2020 or 2.4 billion dollars, vs. 17.6% or 1.7 billion dollars in 2019) have weighed on the share, the analyst says.
Apple is a demanding client, which requires the best technology, with the best possible prices and does not hesitate to change supplier or internalise the solution when it sees an interest in doing so, Oddo says.
Oddo believes that the CEO was once again positive about the market context yesterday. He reiterated that the group is still aiming for a leading position. It seems complicated to us to envisage such a position without being a supplier to Apple... The group will give its 2021 guidance when it announces its Q1 results in April.
Considering all this, and the share's recent fall, Oddo reiterates its Outperform rating on the share, with a target price of 45 euros.
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