Deutsche Bank Downgrades STMicroelectronics (STM) to Hold; Wireless Improving, but ex-Wireless Margin Uncertainty

Deutsche Bank downgraded STMicroelectronics (NYSE: STM) from Buy to Hold, price target lowered from E11.50 to E7.

Deutsche analyst says, "While STMicro's Q2 results were in line with expectations, underutilisation, FX and rising opex drive significant margin compression in H2 and potentially 2012 vs previous expectations. We cut EPS by 22% and 30% and with raised margin uncertainty into any potential macro slowdown in ST's cyclical Auto & Industrial businesses, we lower our recommendation to Hold."

For more ratings news on STMicroelectronics click here and for the rating history of STMicroelectronics click here.

Shares of STMicroelectronics closed at $8.21 yesterday.

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