STMicroelectronics: Turning The Corner As Fundamentals Improve (Rating Upgrade)

2026-01-21 06:52:05 ET

Today, we are analyzing STMicroelectronics ( STM ). Here at the Lab, we view the setup as constructive, even given STM's underperformance over the past 12 months (Fig. 1), which lagged peers such as Microchip (+30%) and Infineon (+28%). In our view, Microchip's recent preannouncements, particularly relevant given its industrial MCU positioning, point to improving near-term conditions that should also be supportive of STM. This is not the first time that we have covered STMicroelectronics, and our neutral stance was backed by multiple factors, including a pricey valuation, Depressed Earnings Ahead , and weak automotive demand. Additionally, we reported our note titled 3 Risks To Price, highlighting negative FX, Mobileye Global's inventory build-up, and Apple concentration. Our assessment of several of the risks outlined above has evolved, which makes this an appropriate time to reassess and update our forecast....

Read the full article on Seeking Alpha

For further details see: