STMicroelectronics: Berenberg cuts target price
(CercleFinance.com) - On Friday Berenberg lowered its target price for STMicroelectronics shares from E33 to E30, against the backdrop of a weaker-than-expected recovery in the semiconductor industry.
The analyst - who still 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 FY 2025.
Berenberg says that its work is in line with the announcement of a downturn in business (around 5% this year), a forecast it however considers unlikely to cause a significant correction in the share price.
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