SLAB - STMicroelectronics Stays On Track As A Top Power Play

• In addition to another beat-and-raise quarter, with particular strength in gross margin, STMicro continues to build its order book, with a backlog already at least 10% above likely 2021 capacity.
• STMicro management reassured the Street on its Apple exposure, with good visibility in 3D sensing for at least three years.
• While the EV and ADAS opportunities are well-understood, investors still be underestimating STMicro's leverage to power management in industrial and renewables, and IoT demand growth.
• STMicro shares still offer a decent return on the basis of long-term revenue/FCF growth and near-term margins, but the risk of a cyclical correction is real, even if likely brief.

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