Analyst Expectations For STMicroelectronics's Future

5 analysts have shared their evaluations of STMicroelectronics STM during the recent three months, expressing a mix of bullish and bearish perspectives.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 3 1 0 0
Last 30D 0 1 0 0 0
1M Ago 1 1 1 0 0
2M Ago 0 1 0 0 0
3M Ago 0 0 0 0 0

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $33.4, a high estimate of $36.00, and a low estimate of $30.00. Experiencing a 12.11% decline, the current average is now lower than the previous average price target of $38.00.

price target chart

Exploring Analyst Ratings: An In-Depth Overview

A comprehensive examination of how financial experts perceive STMicroelectronics is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Christopher Rolland Susquehanna Maintains Positive $33.00 $33.00
Christopher Rolland Susquehanna Lowers Positive $33.00 $35.00
Tristan Gerra Baird Lowers Neutral $30.00 $35.00
Anthony Stoss Craig-Hallum Lowers Buy $36.00 $42.00
Christopher Rolland Susquehanna Lowers Positive $35.00 $45.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to STMicroelectronics. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of STMicroelectronics compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for STMicroelectronics's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of STMicroelectronics's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on STMicroelectronics analyst ratings.

Get to Know STMicroelectronics Better

A merger between Italian firm SGS Microelettronica and the nonmilitary business of Thomson Semiconductors in France formed STMicroelectronics in 1987. STMicroelectronics is a leader in a variety of semiconductor products, including analog chips, discrete power semiconductors, microcontrollers, and sensors. It is an especially prominent chip supplier to the industrial and automotive industries.

Unraveling the Financial Story of STMicroelectronics

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining STMicroelectronics's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -26.63% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: STMicroelectronics's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.8% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): STMicroelectronics's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.98%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): STMicroelectronics's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.37%, the company may face hurdles in achieving optimal financial performance.

Debt Management: STMicroelectronics's debt-to-equity ratio is below the industry average at 0.19, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

Which Stocks Are Analysts Recommending Now?

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

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