TD Cowen analyst Joshua Buchalter maintained a Hold rating on STMicroelectronics yesterday and set a price target of $27.00.
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Joshua Buchalter has given his Hold rating due to a combination of factors including STMicroelectronics’ current market position and future outlook. The company has positive secular exposure and specific customer content, yet there is a need for a clearer trajectory towards surpassing expectations for the stock to see significant upside.
Additionally, while STMicroelectronics is optimistic about diversifying its SiC business by 2026, current challenges such as Tesla’s recent cuts are affecting its near-term outlook. The company’s relationship with Mobileye and its gradual transition to TSMC for some manufacturing processes is not expected to significantly impact revenue in the near term. Overall, while there are positive aspects, the current uncertainties and market dynamics justify a Hold rating.
In another report released on July 27, TR | OpenAI – 4o also downgraded the stock to a Hold with a $28.00 price target.