STMicroelectronics: Jefferies initiates, saying 'hold'
(CercleFinance.com) - On Monday, an analyst at Jefferies began to cover the STMicroelectronics share, adopting a "hold" rating, hoping for a better entry point.
"We like STM's fundamentals (...) and we believe mgmt will increase its dividend within 12-24 months. However, we think the potential for P/E expansion is low because STM is in a capex cycle. Also, Apple represented 13% of revs in 2018... our valuation framework suggests shares are fairly valued," the broker says.
The broker has set a target price of 30 dollars for the share (current price of almost 24 euros).
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"We like STM's fundamentals (...) and we believe mgmt will increase its dividend within 12-24 months. However, we think the potential for P/E expansion is low because STM is in a capex cycle. Also, Apple represented 13% of revs in 2018... our valuation framework suggests shares are fairly valued," the broker says.
The broker has set a target price of 30 dollars for the share (current price of almost 24 euros).
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.