(Boursier.com) — Unsurprisingly, STMicro lost ground at the start of the session in Paris with shares losing 3.7% to 41 euros. It must be said that the group disappointed both in terms of its results and its guidance. Bernstein (‘outperform’) says that while STMicro delivered overall in 2023, 2024 looks set to be difficult despite stable demand for automotive chips. As the personal electronics market continues to recover and the industrial segment weakens, it appears that stable demand for automotive chips will not be enough to help STMicro meet margin expectations in 2024, a topic of discussion. concern for investors. Jefferies (‘keep’) believes that the ‘miss’ in guidance shows that the group is seeing a further significant deterioration in the industrial segment and a growing weakness in demand for automotive chips. Guidance for the financial year implies a significant recovery in the second half and “at this stage we believe there may be downside risks to this outlook.”
Finally, Citi (‘buy’) explains that the company experienced greater than expected weakness in orders in the 4th quarter, with stable demand in the automotive and personal electronics segments more than offset by further deterioration of industrial activity. The guidance is disappointing for 2024, but it’s likely a “significant enough reduction” to reassure the market that the company has properly accounted for downside risks relative to expectations.
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