Negative

From Investing.com: 2024-12-09 07:55:02

STMicroelectronics has been downgraded to “neutral” from “overweight” by J.P. Morgan analysts due to challenges in key end markets, especially the automotive sector. The slow destocking of inventory in the auto supply chain poses a risk to revenue and profitability. Industrial segment struggles with inventory levels, leading to a weak start to 2025. J.P. Morgan adjusted price target to €30 with cautious outlook on earnings potential. Earnings forecast for 2025 significantly below consensus, reflecting near-term challenges. Despite potential positives in microcontroller unit business and new Apple contract, risks and inventory issues outweigh, aligning rating with competitor Infineon Technologies.



Read more at Investing.com: J.P. Morgan cuts STMicro PT on inventory woes By Investing.com