STMicroelectronics STM has been analyzed by 4 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 2 | 0 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 2 | 1 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $39.5, along with a high estimate of $42.00 and a low estimate of $35.00. A 19.8% drop is evident in the current average compared to the previous average price target of $49.25.
Understanding Analyst Ratings: A Comprehensive Breakdown
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 | Lowers | Positive | $35.00 | $45.00 |
| Sara Russo | Bernstein | Lowers | Outperform | $41.00 | $54.00 |
| Matthew Ramsay | TD Cowen | Lowers | Buy | $40.00 | $50.00 |
| Anthony Stoss | Craig-Hallum | Lowers | Buy | $42.00 | $48.00 |
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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of STMicroelectronics compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
Capture valuable insights into STMicroelectronics's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
Stay up to date on STMicroelectronics analyst ratings.
Unveiling the Story Behind STMicroelectronics
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.
Key Indicators: STMicroelectronics's Financial Health
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Negative Revenue Trend: Examining STMicroelectronics's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -25.29% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: STMicroelectronics's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 18.97% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.51%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): STMicroelectronics's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.41% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: STMicroelectronics's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.17.
Analyst Ratings: What Are They?
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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