Craig-Hallum upgrades STMicroelectronics to Buy, sees strength in MCU pricing

As previously reported, Craig-Hallum analyst Anthony Stoss upgraded STMicroelectronics (STM) to Buy from Hold with a price target of $58, up from $28. The firm sees strength in microcontroller unit pricing as a long-term benefit to STMicroelectronics. While the company does not break it out, Craig-Hallum believes MCUs could be 30%-35% of total revenues, and it thinks elevated pricing could last well into 2027 and possibly through 2028. Overall, the firm sees STMicroelectronics positioned well, coming off of a stronger March quarter and June guide, and believes investors should now look at it with MCU price increases and gross margin accretion through FY26.