STMicro: Credit Suisse confirms Outperform rating
(CercleFinance.com) - The group's CEO yesterday reiterated his medium-term plan, which forecasts annual sales of 12 billion dollars against 9.
6 billion in 2019.
Following this announcement, Crédit Suisse confirms its Outperform rating on the share, with a target price of 28.50 euros.
Management expects an improvement in manufacturing in the near term and an operational leverage of R&D investments in the medium term.
"We expect MDG segment to deliver sales of $2.93bn (+11% yoy) in 2020 with EBIT of 15.5% after recovering from inventory correction seen during 2H18 and 1H19 (2019 sales down 10% yoy)," the broker says.
"Within this, we model i) MMS sub-segment to have sales of $2.27bn (+13% yoy)".
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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.
6 billion in 2019.
Following this announcement, Crédit Suisse confirms its Outperform rating on the share, with a target price of 28.50 euros.
Management expects an improvement in manufacturing in the near term and an operational leverage of R&D investments in the medium term.
"We expect MDG segment to deliver sales of $2.93bn (+11% yoy) in 2020 with EBIT of 15.5% after recovering from inventory correction seen during 2H18 and 1H19 (2019 sales down 10% yoy)," the broker says.
"Within this, we model i) MMS sub-segment to have sales of $2.27bn (+13% yoy)".
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.