Deep Dive Into STMicroelectronics Stock: Analyst Perspectives (4 Ratings)

Ratings for STMicroelectronics STM were provided by 4 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

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. This current average represents a 19.8% decrease from the previous average price target of $49.25.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of STMicroelectronics among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

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: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate 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.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of STMicroelectronics's market position. Stay informed and make well-informed 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.

STMicroelectronics: A Financial Overview

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Challenges: STMicroelectronics's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -25.29%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind 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): STMicroelectronics's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.51%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): STMicroelectronics's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.41%, the company showcases efficient use of assets and strong financial health.

Debt Management: STMicroelectronics's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.17.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

Breaking: Wall Street's Next Big Mover

Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details.

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