STMicroelectronics: Stifel still a buyer
(CercleFinance.com) - Stifel maintains its buy rating on STMicroelectronics shares (TP maintained at E60), believing that Tesla's plan to use less silicon carbide will only have fairly limited implications.
At a meeting with investors the day before yesterday, Tesla announced plans to reduce the intensity of silicon carbide applications in its new vehicle platform by 75%.
According to Stifel, this announcement rattled the chains in the sector, as the Californian group is at the forefront of this technology.
The analyst points out that Tesla also represents 4% of ST's revenue and remains an important contributor to the chipmaker's growth targets.
However, it says that the worst-case scenario is only on the cards in the long term.
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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.
At a meeting with investors the day before yesterday, Tesla announced plans to reduce the intensity of silicon carbide applications in its new vehicle platform by 75%.
According to Stifel, this announcement rattled the chains in the sector, as the Californian group is at the forefront of this technology.
The analyst points out that Tesla also represents 4% of ST's revenue and remains an important contributor to the chipmaker's growth targets.
However, it says that the worst-case scenario is only on the cards in the long term.
Copyright (c) 2023 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.