STMicroelectronics Shares Surge 17% in a Week, Deutsche Bank Upgrades to Buy
STMicroelectronics climbs 1.72% this Wednesday, trading at €35.39, bringing its weekly gain to nearly 17%. The stock of the Franco-Italian semiconductor manufacturer is moving against the trend of a CAC 40, which is down 0.63% in the session, in a context of favorable sector dynamics for European technology stocks.
Deutsche Bank Upgrades STMicroelectronics, Raises Target Price
Today's session is highlighted by the publication this morning of a new recommendation from Deutsche Bank, upgrading STMicroelectronics to 'buy' with a raised target price from €32 to €42. This new target implies a potential upside of about 18.7% from the current price of €35.39. The upgrade comes a week before the release of the Q1 2026 results, scheduled for April 23. The stock benefits from a supportive environment for the semiconductor sector: in Europe, ASML Holding is up 1.20% and ASM International up 2.18% in the session. Across the Atlantic, Micron Technology jumped 9.17% at Tuesday's close, while Advanced Micro Devices gained 3.34%. This transatlantic momentum accompanies the stock's rise, with a three-month performance now at 46.66% and nearly 97% over one year.
Technical Analysis: STMicroelectronics Exceeds Upper Bollinger Band
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Graphically, the price of €35.39 is above the upper Bollinger band set at €34.57, indicating a potential overbought signal. This breach illustrates the magnitude of the recent bullish movement, with the stock having left a consolidation zone around €25 in just a few weeks. The RSI stands at 75, confirming this buying pressure: beyond the threshold of 70, this momentum indicator usually signals that the stock is overbought and could experience a cooling-off period. The 50-day moving average is significantly below the current price at €28.50, while the 200-day moving average is at €24.50. This significant gap between the prices and the long averages reflects the recent acceleration of the movement. The next resistance threshold is at €34.79, corresponding to the previous day's close, a level now surpassed. As the quarterly results of April 23 approach, the monthly volatility remains contained at 13%, a parameter to watch in the upcoming sessions.
« 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.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.
