Baird upgraded STMicroelectronics (STM) to Outperform from Neutral with a price target of $50, up from $23. The firm increased second half of 2025 estimates and upgraded the shares citing the ongoing cycle recovery, the company’s gross margin expansion, a bottom in silicon carbide revenue, and STM’s higher content in upcoming new products. The company’s industrial revenue has declined 64% and automotive revenue 47%, but inventory normalization in these end-markets by end of this year will drive easy compares starting in the first half of 2026, the analyst tells investors in a research note. Baird sees a recovery in STM’s margins accelerating in Q3 along with utilization rates.
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