STMicroelectronics: Oddo raises target price

(CercleFinance.com) - After organising a roadshow with the the group's CEO and CFO, Oddo confirms its buy rating on the share and has raised its corresponding target price to 25 euros (from 23 euros).


Analysts believe that factors behind the group's outperformance of 2019 will continue in 2020. Oddo says that the share remains cheap relative to its peers, but also in light of its medium-term plan.

In its Automotive business, the group's repositioning on new products (such as Silicon Carbide) protects it in a market that remains complicated. The smartphone momentum remains very strong, particularly with Apple, but not just this client... Huawei is an unexpected driver and this should continue, analysts explain.

In its Microcontrollers business, after the end of inventory correction, the group is starting to grow again, confirming its new status in these products, they add.


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