STMicroelectronics stock rebounds and stands out in a sluggish CAC 40
In a nearly stable CAC 40, STMicroelectronics is making its mark this Wednesday, supported by dual analyst backing published in recent hours. The rebound occurs amid tense geopolitical tensions in the Middle East, while the stock remains under pressure over longer horizons.
Citi and BNP Paribas Exane raise their price targets on STMicroelectronics
Two brokerage firms have updated their opinion on STMicroelectronics in recent hours. Citi initiates coverage with a buy rating on Wednesday, September 2, raising its target from €62 to €65, representing an upside potential of over 50% compared to the current price. BNP Paribas Exane maintains its outperform rating while slightly raising its target from €72 to €73, which represents a difference of nearly 70% with the current quote.
These two moves are in the same direction and offer a support floor for the stock in a generally gloomy session for European equities, with the DAX declining more than 1% during the session. Valuation remains elevated: according to the consensus of analysts surveyed, the stock is trading at approximately 19.7 times expected earnings for the following fiscal year.
STMicroelectronics resists against the tide of its American peers, but remains below key moving averages
The rebound of STMicroelectronics contrasts with the decline of several American semiconductors: Lam Research loses 3.74%, Micron falls 2.64%, Advanced Micro Devices down 2.36% and Nvidia down 1.51% at Tuesday's close. ASM International advances by 1.17% in turn, in the same direction as STMicro. Despite this improvement, the technical setup remains constrained: the stock trades at €43.07, below its 20-day MA at €45.14 (difference of -4.60%) and well below its 50-day MA at €51.74 (difference of -16.77%).
The RSI at 35 signals seller exhaustion without a clear reversal signal for the time being. Only the 200-day MA at €39.09 remains below the price, offering a technical floor to monitor, especially since the support identified at €42.22 is not far away. Over one month, the stock is still down 5.71% and over three months nearly 27%.