Jefferies Starts STMicroelectronics (STM) at Hold

Jefferies analyst Mark Lipacis initiates coverage on STMicroelectronics (NYSE: STM) with a Hold rating and a price target of $30.00.

The analyst comments "We like STM's fundamentals, view it as an IoT play in our "4th Tectonic Shift in Computing" framework, and believe it will increase its dividend within 12-24 months. However, we think the potential for P/E expansion is low because STM is in a CapEx cycle, it has 13% exposure to Apple, and our Capital Return framework suggests it is fairly valued. Our price target is $30; we like STM's fundamentals but would prefer a better entry point."

For an analyst ratings summary and ratings history on STMicroelectronics click here. For more ratings news on STMicroelectronics click here.

Shares of STMicroelectronics closed at $26.51 yesterday.

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