STMicro: Oddo maintains its buy rating
(CercleFinance.com) - Global semiconductor sales for January 2021 were published yesterday evening by the WSTS (World Semiconductor Trade Statistics), as usual with a month's delay.
The 3-month moving average came in at 40 billion dollars, above Oddo's forecast of 39.5 billion dollars.
Annual growth therefore works out at +13.2%, representing an acceleration from December's +9.8%, the analyst points out that.
Oddo believes that the acceleration should continue until the middle of the year, with an average annual growth of 15% or more possible and even +21% in March.
In a situation of strong demand and shortages in many market segments (not only automotive), the broker remains constructive on the sector and believe that it is too early to be more cautious on the sector.
Oddo maintains a predominantly positive view of the sector's stocks, particularly component manufacturers (ASML and ASMi) which will continue to benefit from spending on technology.
The broker is playing automotive exposure, via STMicroelectronics and Infineon, on which it recently upgraded to Outperform.
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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.
The 3-month moving average came in at 40 billion dollars, above Oddo's forecast of 39.5 billion dollars.
Annual growth therefore works out at +13.2%, representing an acceleration from December's +9.8%, the analyst points out that.
Oddo believes that the acceleration should continue until the middle of the year, with an average annual growth of 15% or more possible and even +21% in March.
In a situation of strong demand and shortages in many market segments (not only automotive), the broker remains constructive on the sector and believe that it is too early to be more cautious on the sector.
Oddo maintains a predominantly positive view of the sector's stocks, particularly component manufacturers (ASML and ASMi) which will continue to benefit from spending on technology.
The broker is playing automotive exposure, via STMicroelectronics and Infineon, on which it recently upgraded to Outperform.
Copyright (c) 2021 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.