(CercleFinance.com) – Oddo BHF reiterates its ‘outperformance’ opinion on Stmicroelectronics with an adjusted price target of 58 to 55 euros, in the wake of a downward revision of its forecasts of 6% on average over 2024/25 for the Franco-Italian semiconductor manufacturer.
‘The face of 2024 is still uncertain due to the industry, but the automobile sector should grow and consumer consumption should begin to rebound’, estimates the analyst, who also points to good control of margins and a probable tactical reduction in Capex in 2024.
The research office also highlights an ‘abnormally low’ valuation of STMicro at less than 10 times the prospective PE (price to EPS ratio), i.e. a discount of more than 50% compared to the Sox, a historic high.
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