(CercleFinance.com) – Oddo maintains its ‘outperformance’ rating on STMicro shares, with a price target raised from 48 to 50 euros.
The analysis office believes in particular that “demand remains very well oriented” and that “the group benefits from opportunities for structural growth”.
The results for the 1st quarter (Sales stable at $3.55 billion, MB of 46.7% and EPS of $0.79) came out well above expectations (MB of 45% and EPS of $0.71) and for the 2nd quarter, STM is targeting sales of $3.75 billion (consensus at $3.6 billion), with a record MB since 2000 of 46% (css at 44.5%).
For the year as a whole, STM repeats its guidance: the group is still aiming for sales of between $14.8 billion and $15.3 billion, or +16 to +20%.
In this context, Oddo is raising its forecasts by 5% for 2022/23, in particular for MB 2022 (46% vs 45%) and is positioning itself at the very top of the sales range for 2022 (15.3% to +20% ).
For the analyst, the title is “extremely cheap” and clearly incorporates the hypothesis of a market decline in 2023, “which is not our favorite scenario for the time being”, he concludes. .
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