STMicroelectronics Shares Soar Nearly 4%, Leading the CAC 40
The increase coincides with two target upgrades published on June 10 and 11 by Bank of America and Deutsche Bank, which significantly raised their targets. Two major American firms have consecutively raised their price targets, endorsing a spectacular rally that began in the spring.
Deutsche Bank and Bank of America Raise Their Targets on STMicroelectronics
STMicroelectronics shares gained 3.65% to €63.57, leading the CAC 40 as the index rose by 0.82%. The stock benefits from two consecutive target upgrades by two leading American firms. Deutsche Bank increased its target from €52 to €75, with a buy rating, representing a potential of about 18% from the current price.
Bank of America went further, raising its target from €71 to €86, also with a buy rating, implying a potential of around 35%. These revisions extend a series of upgrades that began last month by UBS and Oddo BHF, after the company in June raised its ambition for its data center business to one billion dollars by 2026, as announced in the June 2 press release. Based on the consensus of surveyed analysts, the stock is trading at about 57.8 times the expected earnings for the current fiscal year and 30.4 times those of 2027.
The Stock Strengthens a Rally of 118% Over Three Months and Moves Away from Its Moving Averages
Today's movement reinforces an exceptional underlying dynamic: +29.6% over a month and nearly 118% over three months, while the annual performance is close to 143%. The price is now 6.9% above its 20-day moving average (€59.46) and more than 33% above its 50-day moving average (€47.49), reflecting the magnitude of the bullish gap relative to technical benchmarks. The RSI at 59 does not yet send a signal of immediate overheating, after a 7.2% decline over the last seven days had mitigated the excesses accumulated in May.
The next area of friction is at the resistance level of €68.49, which is just over 7% above today's price. The stock is moving against the trend of a declining American sector, with Nvidia, AMD, and Micron Technology dropping between 3.7% and 4.9% on Wall Street the previous day, while its European comparables ASML and ASM International respectively gained 3.37% and 3.73% during the session.
