STMicroelectronics NV (0INB – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Janardan Menon from Jefferies upgraded the rating on the stock to a Buy and gave it a €34.00 price target.
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Janardan Menon has given his Buy rating due to a combination of factors including the anticipated acceleration in growth from the second half of 2025, driven by a normalization after inventory corrections and increased content in future iPhone models. Additionally, Menon expects a recovery in industrial demand and sees structural growth drivers in areas such as Edge AI, low-Earth orbit satellites, silicon photonics, and automotive microcontrollers.
Menon believes that the bottom of the inventory correction cycle for STMicroelectronics NV will occur in the first quarter of 2025, leading to a gradual improvement in revenue and gross margins. He forecasts a significant increase in earnings per share by 2026, which is expected to be 22% above consensus estimates. The company’s involvement in projects like Apple’s iPhone 17 and partnerships with major tech players in AI data centers is also anticipated to boost its growth trajectory.
According to TipRanks, Menon is an analyst with an average return of -1.4% and a 44.66% success rate. Menon covers the Technology sector, focusing on stocks such as Infineon Technologies AG, ams-OSRAM, and ARM Holdings PLC ADR.
In another report released on February 4, Stifel Nicolaus also maintained a Buy rating on the stock with a €26.00 price target.