STMicroelectronics Stock Slips to the Bottom of the CAC 40 and Drops Below Its MM20
The Franco-Italian semiconductor manufacturer experiences a new round of profit-taking in early afternoon, moving against a CAC 40 that is just stable. The stock slips to the end of the Parisian index, following a downturn in the European semiconductor sector. However, a new note from an American analyst significantly raises the price target.
The Stock Falls Below Its MM20 and Loses Lead in the CAC 40
STMicroelectronics stock loses 1.69% to €60.95 and finds itself at the bottom of the CAC 40, while the index remains nearly flat. This movement is part of a European sectoral retreat, with ASML losing 1.73% and ASM International 1.71%. The stock thus erases part of the 4% increase recorded last Thursday, when it had taken the lead in the Parisian index.
The decline moves the price below the 20-day moving average (€64.55), with a gap of 5.58%. The MM50 (€53.94) and the MM200 (€31.91), however, remain well below the current price, evidence of the underlying rally: the stock gains nearly 80% over three months and more than 120% over a year. The RSI at 54 indicates a neutral configuration after the correction phase of the past month, marked by a 10% decline in thirty days.
TD Cowen Significantly Raises Its Target on STMicroelectronics to $61
On the analyst opinion front, TD Cowen revised its price target from $43 to $61 this Monday, while maintaining a 'hold' rating. The new target is at the level of the current converted price, reflecting the recent catch-up of the stock rather than additional potential at this stage. According to the consensus of analysts surveyed, the stock is trading at about 53 times the earnings expected for the current fiscal year and 26.9 times those of the next fiscal year, a high multiple that already incorporates the rebound of the coming quarters.
The session is also animated by a resurgence of tensions around the Strait of Hormuz, which pushes Brent crude up nearly 4%. This context penalizes the most cyclically exposed stocks to the global economic situation, a category that includes semiconductor manufacturers. The next key level to watch remains the technical threshold of €52.15, a support identified several euros below the current price.
