Mizuho Starts STMicroelectronics (STM) at Neutral

Mizuho analyst Vijay Rakesh initiates coverage on STMicroelectronics (NYSE: STM) with a Neutral rating and a price target of $22.00.

The analyst comments: "STMicroelectronics (STM) is a leading European analog OEM and the third largest globally. We see secular long-term tailwinds for STM offset by near-term 2026E headwinds. STM benefits from: 1) secular long-term Auto electrification, ADAS/robotaxis, and software-defined vehicles driving HSD% Auto rev CAGR (well above Auto production ~1%), and 2) Industrial tailwinds driving long-term content growth in Robotics/AI servers, power & energy, and higher iPhone content. In 2026E we see challenges as key EU/US customers (VW/STLA/TSLA, (~70% of Auto rev) could see LVP down 5-7% y/y, along with China Auto/EV subsidy cuts, while the global Industrial recovery remains muted. Initiate STM at Neutral, PT $22, ~20.8x F26E P/E, in-line with peers."

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 $22.08 yesterday.

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