STMicroelectronics price target lowered to $35 from $40 at Susquehanna

Susquehanna lowered the firm’s price target on STMicroelectronics (STM) to $35 from $40 and keeps a Positive rating on the shares. The firm posted in-line results/guidance as stronger Industrial and PE offset “customer-specific” weakness in Auto. The firm believes that Tesla (TSLA) is the customer here, but Elon’s market struggles have been well known and should have been embedded in the company’s outlook and messaging intra-quarter. Importantly, 3Q was guided to decline -2.5% year-over-year, which stands in contrast to intra-quarter commentary alluding to a possible return toyear-over-year growth.