STMicroelectronics Shares Mark One of the Strongest Rises in the CAC 40
The Franco-Italian semiconductor manufacturer is advancing at mid-session, bucking a downward trend in the CAC 40. The stock climbs to the top of the Paris index following a significant target upgrade by a major American firm. The rebound comes after a positive session the previous day, which interrupted a profit-taking movement.
Bank of America Significantly Raises Its Target on the Stock and Confirms Buy Recommendation
This Wednesday, Bank of America raised its price target on STMicroelectronics from 71 to 86 euros, accompanying its opinion with a buy recommendation. The new target offers a potential of about 38% compared to the current price of 62.31 euros. The opinion extends a series of upward revisions on the stock. On May 27, Oddo BHF raised its target to 70 euros, and UBS subsequently raised its target in early June as the stock continued its rally. According to the consensus of analysts surveyed, the stock is trading at about 56.7 times the earnings expected for the current fiscal year and 29.8 times those of the following year, a multiple that reflects the magnitude of the revaluation undertaken since February.
Stock Still Significantly Above Its Moving Averages After a 125% Rally in Three Months
The price is at 62.31 euros, well above the MM20 at 59.01 euros (a gap of 5.6%) and far above the MM200 at 29.74 euros, indicating a deeply bullish underlying trend. The RSI at 59 remains neutral, after having entered the tension zone several times in recent weeks. Today's rebound mitigates the nearly 9% decline recorded over a week, following the profit-taking that marked the start of the month. Over three months, the stock retains a gain of 125%, among the strongest performances on the Paris stock exchange. The technical resistance identified at 68.49 euros remains about 10% above the current price. The continuation of the bullish momentum for the semester will depend on the stock's ability to digest this valuation level and to confirm the trajectory set during the ambition upgrade on data centers, unveiled at the beginning of June.
