Bank of America Securities analyst Didier Scemama reiterated a Hold rating on STMicroelectronics NV yesterday and set a price target of €25.00.
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Didier Scemama’s rating is based on a combination of factors that influence STMicroelectronics NV’s financial outlook. Despite some positive indicators such as early signs of demand for the iPhone 17, the company faces several challenges. These include foreign exchange headwinds, tariff impacts, and pricing pressures in the silicon carbide market, which contribute to a cautious outlook.
Additionally, the company is experiencing weaker forecasts in the automotive and industrial sectors, particularly for silicon carbide devices and microcontrollers. The lack of a distinctive product cycle that could drive market outperformance and the potential risk from U.S. tariffs further contribute to the Hold rating. The stock’s current trading slightly above historical multiples suggests optimism, but without a strong demand recovery, the company’s high cost base may impact its operating leverage.
In another report released on September 19, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a €26.00 price target.
Based on the recent corporate insider activity of 60 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of 0INB in relation to earlier this year.