Analysts divided on the STM stock listed on the Milan Stock Exchange. The shares of the manufacturer of semiconductorswhich have lost around 11% since the beginning of the year (around € 39), the main investment banks do not agree, which express different opinions on the future of its prices.
STM, the latest opinions of analysts
Self Credit Suisse judge the title by outperform with a target price equal to 65 euros, Jefferies assign a rating underperform with target price of 30 euros. Analysts expect 2023 revenues and earnings to be penalized by weaker demand trends. In detail, Jefferies estimates Eps to fall 6% next year, a forecast that is 12% below the consensus.
Kepler Cheuvreux confirms the recommendation buy on the Stm share, with a target price of 60 euros. Analysts highlight that there is “strong visibility” on the automotive and industrial markets (each 30% of sales) for the next few quarters “. For Kepler Cheuvreux Stm “it benefits from solid growth drivers and the valuation” of the stock “looks quite interesting”.
Purchase recommendation “buy” also from Alphavalue (tp 57.60), Stifel (tp 56 euros), Deutsche Bank (tp 52 euros) e SocGen (72 euros): the latter see a potential upside for the stock up to 72 euros, + 70% approximately from current values. Outperform instead comes from Oddo (60 euros), Bnp Paribas (69 euros) and Intermonte (54.40 euros).
The 2022 forecasts of the accounts
Among the latest ideas, the dissemination, a few weeks ago, of the 2021 results. STM closed the 2021 financial year with revenues net growth of 24.9% to 12.76 billion dollars, with a gross margin of 41.7% and an operating margin of 19%. Net income jumped 80.8% to $ 2 billion.
In the last quarter of the year, revenues were up 9.9% to 3.56 billion dollars, with a gross margin of 45.2% and an operating margin of 24.9%. Ebit is $ 885 million, up 35% on an annual basis, expected to be $ 861 million. Earnings per share are at $ 0.82, up 30% on the previous year and with expectations of $ 0.77.
The markets were positively surprising forecasts for the current quarter. Revenues are estimated at $ 3.5 billion (+ 16% year on year), consensus expected $ 3.28 billion, gross margin is expected at 45%, expected 42.3%, which implies gross profit of 1.575 billion dollars and an Ebit higher than 800 million dollars, 30% higher than expected.
For the whole 2022 STM expects sales between $ 14.8 and $ 15.3 billion (the mid-point above 18% on an annual basis), 5% above consensus, the capex between 3.4 and 3.6 billion, with expectations that stood at 2.3 billion, the intent is to increase production capacity in the face of solid demand.