Cost SavingsPotential cost savings could increase ’26E EPS by 15-26%.
Financial PerformanceSTM's 2Q24 revenues were above company-compiled consensus, as lower revenues in automotive and industrial segments were offset by higher revenues in personal electronics, with EBIT 10% above consensus.
ValuationConsidering that the stock trades on less than 10x PER 2026E and 5.3x EV/EBITDA before any possible cuts, the risk/reward on the stock is attractive.