Didier Scemama, an analyst from Bank of America Securities, reiterated the Hold rating on STMicroelectronics NV. The associated price target remains the same with €25.00.
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Didier Scemama has given his Hold rating due to a combination of factors affecting STMicroelectronics NV. The company is facing a shallow recovery in its end-markets, with under-utilization of its manufacturing capacity impacting gross margins. This is compounded by anticipated headwinds in the first half of 2026, including lower capacity reservation fees and traditional pricing resets.
Despite management’s efforts to reduce operating expenses, challenges such as wage inflation and lower R&D grants are expected to increase net R&D costs. On a positive note, potential growth in the second half of 2026 could arise from new content in flagship smartphone models and initiatives in silicon photonics. However, issues like overcapacity in silicon carbide, competition from China in microcontrollers, and high inventory levels are likely to constrain gross margins, justifying the Hold rating.
According to TipRanks, Scemama is a 2-star analyst with an average return of 0.8% and a 47.67% success rate. Scemama covers the Technology sector, focusing on stocks such as ASML Holding NV, STMicroelectronics NV, and Logitech.
In another report released today, J.P. Morgan also maintained a Hold rating on the stock with a €24.00 price target.