STMicroelectronics stock price target lowered to €20 at Barclays

Published 25/07/2025, 02:16
STMicroelectronics stock price target lowered to €20 at Barclays

Investing.com - Barclays (LON:BARC) lowered its price target on STMicroelectronics NV (NYSE:STM) to €20 from €22 on Friday, while maintaining an Underweight rating on the semiconductor manufacturer.

The price target reduction reflects Barclays’ concerns about uncertainties regarding the shape of industry recovery, potential Section 232 risks, and what it considers overly optimistic consensus gross margin expectations.

Barclays based its new price target on a 15x 2026 estimated price-to-earnings ratio, down from its previous 16x multiple and closer to STMicroelectronics’ historical average.

The investment bank estimates STMicroelectronics currently trades at approximately 19x 2026 estimated P/E, which it considers fully valued, suggesting more than 10% downside potential from current levels.

Barclays also cited longer-term concerns related to China, referencing its January 22, 2025, research report titled "What if...China succeeds?"

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.