STMicroelectronics Stock: Up Another +3.4% Following Two Analyst Upgrades
The Franco-Italian semiconductor manufacturer continues its ascent, reaching a new session high among the top performers on the CAC 40. The rally is fueled by new target upgrades from analysts, confirming the extent of the revaluation that began in February. The stock briefly surpassed its technical resistance level, touching €59.86 for the first time before partially retreating.
Morgan Stanley and Jefferies Raise Their Target to €74
STMicroelectronics stock gained 3.52% to €59.99 at midday, in a CAC 40 down by 0.29%. The stock ranks as the second highest increase on the index, just behind Thales. Two firms raised their targets this Thursday. Morgan Stanley increased its target from €46 to €74, maintaining an 'overweight' rating. Jefferies followed suit, raising from €52 to €74, recommending a 'buy'. Both brokers now see a potential upside of about 25% from the current price. These revisions extend the bullish sequence of recommendations, following Oddo BHF's increase to €70 as mentioned in the surge of 111% over three months. In terms of governance, the group announced on Wednesday, May 27, 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 at the BNP Paribas Exane CEO conference on June 2 in Paris.
The Stock Crosses Its €59.84 Resistance During the Session, RSI at 72 Indicates Tension
During the session, the price touched €59.86, briefly exceeding the identified resistance at €59.84 before slightly falling below it again. The breakout remains to be confirmed at the close. The extension of the rally places the stock more than 112% above its 200-day moving average (€27.88), and nearly 14% above its 20-day moving average (€51.97). The RSI at 72 remains in the overbought zone, continuing the tension that has been building over several sessions. The performance reached 7.11% for the week and nearly 164% for the year. In terms of valuation, the stock is trading at approximately 56.7 times the expected earnings for the current fiscal year and 30.5 times those of the following year, according to the consensus of surveyed analysts. The next public milestone is Jean-Marc Chéry's appearance on June 2 at the BNP Paribas Exane conference.
