STMicroelectronics: share rebounds as Berenberg upgrades

(CercleFinance.com) - STMicroelectronics was among the four biggest risers on the CAC 40 on Tuesday's Paris Bourse, with Berenberg upgrading the semiconductor manufacturer's stock from 'hold' to 'buy'.


The broker believes that the weakness of the industrial and consumer electronics markets, and to some extent the automotive sector, is now well priced in.

In analysts' opinion, STM's order book and margins should improve in the second half, against a backdrop of stabilisation in its main markets from mid-year onwards.

In addition, they believe that the company's exposure to Apple and Tesla, now below pre-2022 levels, could eventually lead to a revaluation in terms of multiple, Berenberg concludes.

In the run-up to noon, STMicroelectronics shares were up 0.8% after rising by over 2.7% at the start of the session, while the CAC was up 0.3%. YTD the stock has lost nearly 18%.


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