STMicroelectronics stock breaks through its support level at 41.17 €
The semiconductor manufacturer extends a turbulent October and ranks among the most underperforming values in the Paris index. The decline follows the opinion of an American broker and occurs in a lackluster European market.
A support lost after a week down 12%
The STMicroelectronics share falls 2.9% to 40.01 € during the session, and breaks below its support level of 41.17 €. The stock is now down 12.2% over seven days, while the CAC 40 declines by 0.63%. It ranks among the strongest declines in the index, just ahead of Legrand, today's worst performer. In terms of moving averages, the price is 13.2% below the 20-day MA and 7% below the 200-day MA, a gap that has widened over a few days.
The RSI at 35 remains above the oversold zone. The decline is consistent with the sector: ASML Holding falls 2.54% and ASM International 2.60% on Tuesday. On Wall Street, Micron Technology gained 2.97% and Nvidia 1.38% on Monday, which says nothing about the direction of the day in Europe.
TD Cowen lowers its price target to 45 € on the stock
On Monday, October 19, TD Cowen reduced its price target from 48.50 € to 45 € while maintaining its hold rating. This target remains approximately 12.5% above the current price. The analysts' consensus is available on the dedicated analyst opinions page.
The stock maintains a gain of 61% over one year but is down 25.6% over three months. Market conditions remain tense: the CAC 40 declines amid French debt concerns, with the 10-year OAT at 4.85% according to the latest Banque de France survey. The next level to watch is the support that was broken at 41.17 €, which has now become a resistance zone.
