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
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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.
SectorSemi-conducteurs et matériel›Semi-conducteurs
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Context
Period
Period: T2 2026
Key reported figures
Revenue: 3 487 millions de dollars
Quarterly revenue: 3 487 millions de dollars
Revenue growth: 25,9 %
EBITDA margin: 7,7 %
Net income: 222 millions de dollars
Free cash flow: 75 millions de dollars
Guidance from the release
Nous anticipons une accélération de la croissance du chiffre d'affaires au quatrième trimestre, tirée principalement par les programmes engagés auprès de nos clients dans les domaines des data centers IA et de la communication par satellite LEO.
Risks mentioned
Le mix produit pourrait affecter la marge brute.
Les charges liées aux capacités non utilisées.
Des incertitudes sur les tendances industrielles.
Opportunities identified
Chiffre d’affaires supérieur à 4 milliards de dollars anticipé pour le quatrième trimestre.
Demande solide dans les data centers IA.
Amélioration de la visibilité et des signes de contraintes d’offre.
Outlook / guidance
Expected revenue: 3 700 millions de dollars
Management commentary: Point médian des perspectives pour le troisième trimestre 2026 : chiffre d'affaires net de 3,70 milliards de dollars et marge brute de 37,0 %.
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.
