STMicroelectronics Shares Rise 2% Marking One of the Top Gains in the CAC 40
The Franco-Italian semiconductor manufacturer continues its upward trend in mid-morning trading, following a well-oriented European sector. The stock is positioned at the top of the Paris index, after two American firms raised their price targets.
Morgan Stanley and JP Morgan Raise Their Targets on the Stock
STMicroelectronics is up 1.97% at €64.83 during the session, among the strongest gains in the CAC 40. The movement comes after two consecutive analyst rating upgrades. On June 30, Morgan Stanley raised its price target from €74 to €78, maintaining an 'overweight' rating. The day before, JP Morgan had raised its target from €48 to €71.50, while maintaining a neutral opinion. In the comparable market, ASML is up 3.67% and ASM International 1.65%, confirming the strong performance of the European semiconductor sector. According to the consensus of surveyed analysts, the stock is trading at about 57.4 times current year earnings and 29.2 times the following year's earnings, a multiple that reflects the surge over the last three months.
The Stock Reaches its 20-Day Moving Average After a 127% Rally Over Three Months
Today's rebound brings the share price back in contact with the 20-day moving average at €64.55, after a week of pause (-6.57% over 7 days). The stock maintains a cushion of 20.19% above its 50-day moving average (€53.94) and remains more than 103% above its 200-day moving average, reflecting the magnitude of the rally that began in the spring (+127% over three months). The RSI at 54 is neutral, having exited a marked overbought zone in mid-June. The resistance identified at €69.39 remains the next technical threshold to cross to extend the upward sequence. The next concrete financial milestone will be the publication of the second quarter accounts.
