STMicroelectronics Shares Soar 111% in Three Months, Oddo Targets €70
The Franco-Italian semiconductor manufacturer continues its rally, reaching a new five-year high during the session. The increase follows a target price upgrade by Oddo BHF, and as technical indicators enter a zone of extreme tension.
New Five-Year High at €61.63 Following Oddo BHF's Upgrade
STMicroelectronics shares gained 1.8% to €60.92 in mid-afternoon trading, after reaching €61.63 during the session. This level surpasses the previous record of €61.03 set the day before, bringing the rally to 16.82% for the week, and 111.1% over three months. The movement extends the sequence that began in early May, with several successive peaks. Oddo BHF yesterday raised its target price from €58 to €70, while maintaining its outperform rating, which represents a potential of about 15% relative to the current price. In terms of valuation, the stock is trading at about 58.4 times the earnings expected for the current fiscal year and 31.4 times those of the next fiscal year according to the consensus of surveyed analysts, a multiple that reflects the extent of the stock's journey. On the governance side, the group announced this Wednesday the appointment of Armando Varricchio as chairman of the supervisory board, with Nicolas Dufourcq as vice-chairman, for a three-year term. Jean-Marc Chéry will also speak on June 2 at the BNP Paribas Exane conference in Paris.
A Tense Technical Setup with an RSI at 79 and Price 119% Above the MM200
The rally places the stock in an extreme technical configuration. The RSI reaches 79, indicating a marked overbought zone, while the price is 19.03% above its 20-day moving average (€51.18). The gap widens even further with longer references: the MM50 is at €39.93 (price 52.57% above) and the MM200 at €27.70, with the price nearly 119.93% above this fundamental reference. The index context remains supportive, with the CAC 40 progressing by 1.08% during the session and the Nasdaq trending upwards. European peers are also moving up, with ASML gaining 2.71% and ASM International 2.04%. In the United States, Micron is soaring by 19.29% in session. The reference resistance at €59.84 has given way, technically paving the way to the €70 targeted by Oddo BHF. The next agenda marker is Jean-Marc Chéry's speech at the BNP Paribas Exane conference on June 2.
