STMicroelectronics Shares Drop 5% Despite Upgrades to 35 and 36 Euros
STMicroelectronics experiences a sharp decline this Friday midday, dropping over 5% in a downward trending Paris market. The semiconductor manufacturer's stock is moving contrary to two significant upward revisions published in the last few hours by Jefferies and Morgan Stanley. The CAC 40 is down 1.12% during the session, at 7,681.98 points.
STMicroelectronics is trading around 27.82 euros at midday, down 5.07% from Thursday's close (29.30 euros). This sharp drop brings the price close to its 50-day moving average at 26.98 euros, a technical threshold that could act as a short-term support zone. The identified support at 26.92 euros almost coincides with this level, reinforcing its significance. The stock had reached the upper zone of its Bollinger Bands (30.00 euros) in recent days, before this sudden pullback. The RSI, now at 58, returns to a neutral zone after approaching the overbought threshold, indicating a waning of the recent bullish momentum. Despite this challenging session, the three-month performance remains strong at +26%. The stock also shows a gain of 29.1% over one year, driven by the recovery in the European semiconductor sector. ASML Holding, a comparable sector peer, also fell sharply this Friday, with a session loss of 2.80%.
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This downward movement occurs paradoxically as two major investment banks have just raised their outlook on the stock. Jefferies upgraded its target this Friday from 29 euros to 35 euros, while maintaining a buy recommendation. The day before, Morgan Stanley had made a double upgrade: from 'market-weight' to 'overweight' and raised the target from 24 euros to 36 euros. At current prices, these two targets imply a potential revaluation of approximately 26% to 29%. The next key event is scheduled for April 23, the date of the first quarter 2026 results announcement. This milestone will allow for an assessment of the group's revenue and margin trajectory, at a time when market conditions for chips remain closely monitored. In the meantime, today's correction fills some of the gap accumulated in recent weeks, without undermining the underlying bullish trend, as the stock remains well above its 200-day moving average (24.19 euros).
« Le chiffre d'affaires du quatrième trimestre a dépassé le milieu de notre prévision et la marge brute a été soutenue par un meilleur mix produit. »
STMicroelectronics a publié ses résultats pour le quatrième trimestre et l'année 2025. Le chiffre d'affaires annuel s'établit à 11,8 milliards de dollars avec une marge brute de 33,9% et un résultat opérationnel de 175 millions de dollars. Le bénéfice net attribuable aux actionnaires pour l'année est de 166 millions de dollars, et le flux de trésorerie disponible (non-U.S. GAAP) pour l'année est de 265 millions de dollars. Pour 2026, le point médian du trimestre est un chiffre d'affaires attendu de 3,04 milliards de dollars et une marge brute d'environ 33,7%.
Risks mentioned
changements dans les politiques commerciales mondiales, y compris les tarifs et barrières commerciaux, susceptibles d'affecter la demande
incertitudes macroéconomiques et inflation, influençant la production et la demande finale
écarts entre la demande client et les projections nécessitant des mesures de transformation
capacité à concevoir, fabriquer et vendre des produits innovants dans un environnement technologique rapide
Outlook / guidance
Expected revenue: Le chiffre d'affaires du premier trimestre 2026 est attendu autour de 3,04 milliards de dollars, en baisse séquentielle d'environ 8,7% et avec une marge brute d'environ 33,7% (plus ou moins 350 pb pour le chiffre d'affaires et plus ou moins 200 pb pour la marge brute).
Management commentary: La direction souligne que les perspectives dépendent des conditions macroéconomiques, des taux de change et du mix produit.
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
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