STMicroelectronics: Berenberg cuts its price target

(CercleFinance.com) - Berenberg announced on Friday that it had lowered its price target for STMicroelectronics shares from €33 to €30, against the backdrop of a weaker-than-expected recovery in the semiconductor industry.


The analyst - who maintains his Buy recommendation - believes that the impact of weak demand in the chip market and the effect of component destocking in the automotive sector are now well known to investors.

He fears, however, that analysts will revise their earnings forecasts for the Group even further downwards when it unveils its outlook for the 2025 financial year.

Berenberg indicates that its work is in line with the announcement of a downturn in business of around 5% this year, a forecast it considers unlikely to cause a significant correction in the share price.

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