William Blair analyst Jed Dorsheimer has maintained their neutral stance on STM stock, giving a Hold rating today.
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Jed Dorsheimer’s rating is based on several factors, including STMicroelectronics’ recent earnings report which showed a significant miss in expected earnings per share (EPS) for the second quarter. Despite revenue slightly exceeding expectations at $2.77 billion and gross margins aligning with forecasts at 33.5%, the unexpected negative turn in EPS has raised concerns.
Given these mixed results, Dorsheimer has opted for a Hold rating, reflecting a cautious stance. The Hold rating suggests that while there are some positive aspects, such as revenue performance, the overall uncertainty and recent negative EPS surprise warrant a more conservative approach. This rating indicates that investors may want to wait for more clarity on the company’s future performance before making any significant investment decisions.
In another report released today, Craig-Hallum also downgraded the stock to a Hold with a $28.00 price target.