Update shared on23 Sep 2025
Fair value Increased 1.29%Analysts raised their price target for STMicroelectronics to €26.17, citing an improved risk/reward profile after the recent selloff, anticipated margin recovery, and strengthening semiconductor industry dynamics outweighing continued end-market softness.
Analyst Commentary
- Bullish analysts highlight improving risk/reward profile after the recent selloff, citing potential tailwinds from new product launches (e.g., Apple's iPhone 17) and normalized semiconductor inventory levels.
- Multiple price target increases are justified by expectations of margin recovery and accelerating utilization rates in H2 2025, as well as anticipated rebounds in industrial and automotive end-markets by early 2026.
- Bullish sentiment is further supported by raised semiconductor sector market growth forecasts and confidence that upcoming quarterly results will meet or exceed expectations.
- Despite some cautious views on European technology hardware and muted direct AI exposure, analysts see valuation support based on 2027 estimates.
- Bearish analysts note ongoing weakness in end-markets and recent sector-wide sell-offs but acknowledge easing inventory corrections and the potential for positive near-term catalysts, particularly in microcontroller orders from China.
What's in the News
- Announced development of next-generation Panel-Level Packaging (PLP) technology with a $60 million pilot line in Tours, France, to enhance manufacturing efficiency and reduce costs for advanced electronic devices; leveraging Direct Copper Interconnect (DCI) for improved chip performance and integration.
- Repurchased 3,713,692 shares for $92 million in Q2 2025, completing a total of 10,268,647 shares or 1.14% for $257 million under the ongoing buyback program.
- Issued Q3 2025 guidance with net revenues expected at $3.17 billion, a 2.5% year-over-year decrease but a 14.6% sequential increase.
- Signed a new license agreement with Metalenz to use its IP for advanced metasurface optics manufacturing, targeting growth opportunities in display and imaging applications and leveraging ST’s 300mm semiconductor platform.
Valuation Changes
Summary of Valuation Changes for STMicroelectronics
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from €25.84 to €26.17.
- The Future P/E for STMicroelectronics has significantly fallen from 15.50x to 13.44x.
- The Discount Rate for STMicroelectronics remained effectively unchanged, moving only marginally from 8.78% to 8.63%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.