STMicroelectronics: Berenberg upgrades stock

(CercleFinance.com) - On Tuesday Berenberg upgraded STMicroelectronics shares from 'hold' to 'buy', while trimming its target price from E53 to E49.


In a sector report, the broker considers that the semiconductor market is no longer far from a recovery, which has led it to revise its opinion on Infineon and STM, whose share prices have fallen sharply this year.

The analyst believes that the weakness of the industrial and consumer electronics markets, and even the automotive sector to some extent, is now well integrated into the share price.

In analysts' opinion, STM's order book and margins should improve in H2, against a backdrop of stabilisation in its main markets from mid-year onwards, they say.

In addition, analysts believe that the group's exposure to Apple and Tesla, now below pre-2022 levels, could eventually result in a revaluation in multiples, they conclude.


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