William Blair analyst Jed Dorsheimer has maintained their neutral stance on STM stock, giving a Hold rating yesterday.
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Jed Dorsheimer has given his Hold rating due to a combination of factors related to STMicroelectronics’ recent financial performance and market conditions. The company’s third-quarter results were mixed, with revenue meeting expectations, but gross margin slightly falling short. Despite earnings surpassing consensus estimates, the overall market reaction was negative, with the stock dropping over 8% pre-market.
Additionally, the automotive sector, particularly in power semiconductors, continues to show weakness, which is a concern for future growth. While the management’s guidance for the fourth quarter aligns with market expectations, the ongoing challenges in key end-markets contribute to the cautious stance. These elements collectively justify the Hold rating, suggesting that investors may want to wait for more favorable conditions before making significant investment decisions.